According to the Federal Reserve Bank of New York, 44 million Americans owe $1.41 trillion in student loan debt as of June this year. That’s an increase of 139% in the last 10 years.
Student loans by themselves will not prevent you from getting a home loan. Even with this debt, borrowers can still qualify for a home loan. If a borrower wants to “get in the game”, they should first go through prequalification. That is the only way they can figure out what they can and cannot afford. It is free and only takes 15 minutes of your time. At minimum, going through this process will put them in the best position to know what they will need to do so they can buy when they are ready.
One of the most important aspects of qualifying for a mortgage is the debt-to-income ratio. If you debt exceeds your income limit thresholds, you will not qualify for a loan. Focusing on your credit and paying off your debts each month will help you get closer to achieving your financial goals. If you have strong credit and can show an ability to repay your debts, a loan officer will have a better chance at approving your home loan.
Remember, there are many different types of loan products. Many are designed to help you with a down payment. Instead of needing 20% down, an FHA loan gives the borrower the chance to put 3.5% down if they have a strong credit score.
Reach out to us today to get pre-qualified and know where you stand. We want to see you achieve your financial goals and we can help you every step of the way.
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