Are Student Loans stopping you for buying a home?

by Marguerite Pate

If you have student loans and are thinking of buying a home, you probably have a few questions about how that debt will affect your plans.

Do you need to be totally debt-free before buying your first home? Or would you even qualify for a home loan with all that debt to begin with?

Fortunately, deciding to buy a home isn’t impossible given today’s facts. A recent Bank rates article reports: “Some 43 million U.S. adults who have had student loan debt have put off making important financial decisions due to that debt,” and “For Gen Z and Millennial borrowing borrowers alone, that number rises to 70%.” One of those decisions is likely to be whether or not to buy your first home. Based on the cited facts, it’s not out of the realm of possibility for you to buy a house soon.

Here’s why. Can you buy a home even though you have student loans? Each year, the National Association of Realtors releases a percentage of first-time buyers with student loan debt. As Parents reports, “the 2020 report shows that 38% of first-time homeowners had student loan debt, with the median amount of $30,000.” That means you’re not alone because there have been plenty of people in situations similar to your own who were approved for and successfully bought a house.

As the publication in Bank rates states, “You can have student loans and a mortgage at the same time,” and “if you have student loans and want a mortgage, there are multiple home loan programs you might qualify for.” Based on the information, owning a home isn’t as far off as you think.

Therefore, you don’t have to search out solutions for this issue on your own. The best way to gain insight into your situation and what your next steps should be from the experts in this field. Your lender can walk you through and present options based on your conditions and offer a clear sense of what previous buyers have done.

Bottom Line:

A significant number of people with student loan debt are finding ways to buy their own homes. A lender will help you consider your options and gauge how far you are from your goal. I work with some of the best lenders in South Jersey. I am happy to pair you up with someone who can guide you through the mortgage process.

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