This couple has done everything asked of them and they are indeed in the process of selling their townhouse. Now it looks like they will be out of a place to stay unless we rent to them for three months. We have really wanted to avoid renting to anyone, but we are already in our new house and are anxious to sell. We are torn because we want to sell as soon as possible and we are trying to decide whether to put our house back on the market. Rather, this is a glitch that could have come up with even a conventional loan.
Every lender is different when it comes down to the very minute details of qualifying.
Suggest that your buyers go to a mortgage broker , not just a lender. By the way, to be fair to the first lender, he may have had to use the student loan payments as the only other source of credit performance his underwriting department would accept. However, by that same token, it behooved him to closely scrutinize that information on all credit reports. Since the buyers are already homeowners, another lender may not need long-term performance on this secondary debt. Try to avoid renting out your home.