Wondering If It Is Possible To Buy A Home Even With Student Loan Debt

Dated: 07/01/2018

Views: 107

Student loan debts may be at all-time highs, but Americans aren't letting that stop them from buying a home. In fact, a recent report shows that 27 percent of all homebuyers have student loan debt. And first-time buyers? A whopping 40 percent have student loans.

So how do they do it? How do they keep making monthly loan installments while saving for a down payment or paying a mortgage at the same time? Here's how today's buyers are making it happen.

  • They're choosing the right loan programs. For buyers with student loan debt, an FHA loan can be a great option. And both Fannie Mae and Freddie Mac have made favorable changes to how student loan debt factors into the mortgage qualification.

  • They're getting gifts and co-borrowing. Many buyers are choosing to use gift money from family members to pay their down payment or other costs, while others are choosing to co-borrow their mortgage with a significant other or roommate. Both of these help lower the costs of homebuying at the outset.

  • They're taking advantage of down payment assistance programs. Saving for a down payment is often the hardest part when you've got student loan debt on your shoulders. Fortunately, there are hundreds of down payment (and closing cost) assistance programs that can help cover these expenses and more. Check your state, city and county to find out if there are any you qualify for.

  • They're working on their credit. A great credit score means a great mortgage rate -- and less money paid monthly and over the life of the loan. Today's buyers are boosting their scores by paying down their debts, avoiding late payments and watching their credit reports carefully.

As they say, "where there's a will, there's a way." And today's young buyers are proof of that. Do you have questions about buying a home while dealing with student loan debt? Get in touch today.

 

Want to Advertise on this Site?

Latest Blog Posts

33 Royal Palm Lane

Check out this new lot listing.https://gina.tagventuresrealestate.com/property/205-242530-33-Royal-Palm-Lane-Palm-Coast-FL

Read More

Oct 14 2018 63830 1

Did you know that there are options for you to LEASE a current home on the market with the Option to Purchase it within the next 5 years?Your rent and the purchase price is also determined when you

Read More

Room For Toys

Check out this McCain Home on 2 acres.  Bring your RV and boat.  Close to a lake for fishing.  Room for pond.  Extra garage.https://beth.tagventuresrealestate.com/property

Read More

Wonder Why Your Home Is Not Selling

This is a tough question many homeowners ask. You might find the answer if you have a crystal ball. But in the absence of that, a mirror might come in handy.You have a personal relationship with

Read More