There have been a lot of reports recently on how the countries outstanding student loan debt is preventing people in their late 20s to mid 30s from stepping into home ownership. According to studies by the CFPB and the National Association of Realtors,
new home ownership by those carrying student loan debt is at a ten year low
As a Realtor, part of my job is to be an advocate for home ownership and the equal access to it. Hopefully soon, a solution will arise to take away a little bit of the financial burden caused by student loans.
In the meantime, if you are thinking of purchasing a home but have fear because of your outstanding student loan debts, you may be surprised to learn that homeownership may not be too far out of your reach. Lenders are actually granting loans
purchase mortgages to people with student loan debt.
The first step, before you go looking for a home to purchase would be to speak with a lender, but remember, pre-qualified and pre-approved are quite different. A person who is pre-qualified hasn’t taken a good look at their finances. A person
who is pre-approved has actually spoken with a lender and has been given a hard number on how much the lender is willing to finance with what percentage down.
Take some time to speak with a lender in your area to get a real idea of what is available to you. Owning your own home may be more of a reality than you think.