As student loans repayments resumed this October, many Americans are dealing with the ghost of student loans past. While budgeting for repayments can be chilling, those student loans don’t need to haunt your homeownership dreams. There may still be options to make homeownership a reality sooner rather than later. Here’s what to know if you’re dealing with student loan debt and want to purchase a home.
Struggles First-Time Home Buyers with Student Loans Can Face
Many Americans have taken out student loans to reach their education and career goals. However, those loans can feel like a not-so-friendly ghost when the loan payments are due, especially when attempting to purchase a home. According to realtor.com out of the 43 million adults who hold student loans, one-third are between the ages of 25 and 34. Many of those young adults are ready to purchase their first home but are dealing with the burden of debt. Specifically, they may struggle with saving for a down payment, closing costs, and keeping their debt-to-income (DTI) low. However, there is still hope for obtaining homeownership, even with student loans.
Why Student Loans Shouldn’t Scare You From Homeownership
Not Every Lending Program is the Same for Deferred Payments
With a wide array of lending programs available for homeownership, some programs have different guidelines for deferred payments. There are multiple programs and variables and it may not be as simple as an equation of debt vs income. If you’ve been doing your own math or using a general online mortgage calculator, you may be surprised what you may learn by consulting with a mortgage lender about your specific situation.
Medical Professionals Have Different Repayment Qualifying
Medical school isn’t cheap, and many physicians have racked up student loans over the years in college. However, when you take out a physician loan that helped you become a medical doctor, dentist, or veterinarian, there may be different repayment qualifying options that can help make homeownership obtainable.
A Trusted Mortgage Lender Can Provide Insight
Don’t assume you do or don’t qualify for a lending program based on your current loan repayment situation. A trusted mortgage lender can provide insight into mortgage programs you may be eligible for, even with existing student loan debt. For example, down payment assistance programs like HomeBoost or MSHDA may help relieve some of the burden of saving for a down payment.
Michigan Mortgage Lender, Julie Krumholz from Superior National Bank
Student loan repayments have you spooked about homeownership? Julie Krumholz can help provide insight into the options available to you.
Julie Krumholz has been helping homebuyers navigate the mortgage process for over 30 years and helps match them with the best program for their needs. Julie has experienced nearly every facet of the mortgage industry, from processing, closing, loan origination, underwriting, QC auditing, and even co-owning a mortgage brokerage firm. She uses her experience to streamline the mortgage process and provide the best homebuying experience possible.
Call Julie Krumholz for help with your homebuying needs at 586-382-5482!