Avoid Student Loan Delays in Homeownership

If you have student loans and want to buy a home, you may be wondering how your debt will affect your plans. Do you have to wait until you have paid off your loans before buying your first home? Is it possible that you could still qualify for a home loan despite the debt? Here's a look at the most recent information to ensure you have the answers you need.

A Bankrate article explains:

“Roughly 60 percent of U.S. adults who have held student loan debt have put off making important financial decisions due to that debt . . . For Gen Z and millennial borrowers alone, that number rises to 70 percent.”

This includes one of the biggest financial decisions you’ll ever make, buying a home. But you should know that, even with student loans, waiting to buy a home may not be necessary. While everyone’s situation is unique, your goal may be more within your reach than you realize. Here’s why. 

Can You Qualify for a Home Loan if You Have Student Loans?

According to an annual report from the National Association of Realtors (NAR), 38% of first-time buyers had student loan debt, and the typical amount was $30,000.

That means other people in a similar situation were able to qualify for and buy a home even though they also had student loans. You may be able to do the same, especially if you have a consistent source of income. As an article from Bankrate says:

“. . . you can have student loans and a mortgage at the same time. . . . If you have student loans and want a mortgage, there are multiple home loan programs you might qualify for . . .”

The key takeaway is, for many people, homeownership is achievable even with student loans. 

You do not need to figure this out on your own. The best way to decide on your goals and next steps is to consult with professionals. A trusted lender can walk you through your options based on your situation, and share what’s worked for other buyers.

Bottom Line

Many other people with student loan debt are able to purchase their own homes. Talk to a lender to go over your options and see how close you are to reaching your goal.

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