STUDENT DEBT 😬CAN I BUY A HOUSE? | Homespire Mortgage


Americans are drowning in more than 1.5
trillion dollars of student loan debt. Whew!
That’s not overwhelming or anything. And you might be wondering: can I get
approved for a mortgage with all of my student debt? And the answer is… dependent
on a few factors. Real talk: Sure, student loan debt can
prevent you from getting approved for a mortgage if you’re spending half your
monthly income on it. Everyone’s situation is totally different, and it
really requires a one-on-one chat with a loan officer. But for now, let’s go
over the basics. Lenders want to see that you’ve had steady employment for at
least two years. But if you’re fresh out of school with no real work experience
yet, don’t worry. If you graduate, find a job, and can show proof that you do and
will have steady income into the future, you can supplement that two-year period
with your college transcripts. If your monthly student loan payments are
crushing you, you could look into a student loan refinancing or
consolidation program to lower your interest rate and get yourself on a
solid repayment plan to get that balance down to put yourself in a better
position to buy a home. Find ways to earn some extra cash.
Remember, there is no prepayment penalty on student debt, so make all the extra
payments you can. And there are a ton of low and no down payment mortgage options.
You should still save for a down payment because the more you put down, the
smaller your monthly payments will be and the more equity you’ll already have
in your home, but don’t stress about it too much.
Bottom line, if student loans are your only debt, you make decent money, and
you’re looking to buy a home well within your means, you should be just fine. If
you’re unsure about where you stand, give us a call. This is what we do. We’ll
crunch the numbers and tell you exactly what you need to do to buy that house. If
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