Do You Have Student Loans? No Problem. You Can Still Buy a Home
Hello again and welcome Houston first time home buyers! Getting a mortgage loan while having student loan(s), may be a bit challenging but not impossible. You do not need to delay purchasing your first home because of your student loan(s). Here are a few things to know about getting a mortgage loan to purchase your first home while having student loan(s):
Almost all mortgage programs today, have built-in accommodations for applicants with deferred student loans and loans that are in repayment.
Your student loan(s) cannot be delinquent or in default.
It is not the amount of your student loan(S) that interest the loan officer, it is the monthly payments.
One way your student loan(s) may impact your mortgage loan, is by reducing the amount you're able to borrow.
Having a student loan will not disqualify you from getting a mortgage.
The total student loan debt in the U.S. currently is around $1.6 trillion, so you are not alone.
According to Congress.gov, approximately 42.7 million Americans have federal student loan debt as of the end of 2024, which represents about 16% of U.S. adults. Again, you are not alone.
One of the most important factors lenders look at is your debt-to-income (DTI) ratio. The percentage of your monthly income that you dedicate towards your monthly debts such as car, credit card, student loan, etc.
Speak with your loan officer about the various loan types that include, USDA loan, VA loans (only if you are a veteran), FHA loans, and conventional, to determine which one will be right for you.
Paying off or paying down debts like credit cards will not only boots your credit scores, but also reduce your debt to income ratio. This is always a good thing.
You can apply with a co-borrower.
Since this will be your first home, you may want to focus on buying a starter home, instead of something more expensive which may be a bit difficult to qualify for.
So don't be despair. You can apply for, and get approved for a mortgage to purchase your first home, even if you have student loan(s), as long as your student loan(s) are not delinquent or in default. Don't be shy. Call your Realtor today and ask him or her for mortgage lender referrals to get the process started. You can also call us.
As always, thank you so much for stopping by. Remember, if you are thinking of purchasing your first home, please contact us. We are here to help. We have been helping Houston first time home buyers since 2011 and we can help you. I hope you have an amazing day. Until next time...Diana
