Making FHA Work for Borrowers with Student Debt Act of 2021

This bill requires the Federal Housing Administration (FHA) to modify its treatment of student loan debt for purposes of determining eligibility for federally insured mortgages for single-family homes. Specifically, the FHA must calculate a borrower's student loan debt obligation as the monthly payment required in connection with the loan or, if no monthly payment is required, 0.5% of the outstanding balance of the loan. Currently, the FHA calculates a borrower's student loan debt obligation as 1% of the outstanding balance of the loan.