If you’re burdened by student loans and dream of owning a home, you might wonder how your debt affects your ability to buy a house. Are you required to clear your student loan slate before diving into homeownership, or is it feasible to secure a mortgage while carrying this financial baggage? Let’s delve into the latest insights to provide you with the clarity you seek.
A recent Bankrate article sheds light on the impact of student loan debt on financial decision-making:
“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 pivotal choices like purchasing a home. However, the notion that homeownership is out of reach due to student loans may not hold true for everyone. Your homeownership aspirations might be closer than you think, even with student loans to manage. Here’s why.
Qualifying for a Home Loan with Student Loans
According to the National Association of Realtors (NAR), 38% of first-time homebuyers carry student loan debt, with the average amount totaling $30,000. This statistic indicates that many individuals in similar circumstances have successfully navigated the homebuying process despite having outstanding student loans. With a stable income, you could be eligible for various home loan programs, as highlighted in a Bankrate article:
“. . . 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 bottom line? Homeownership is attainable for numerous individuals, even in the presence of student loan debt.
Seeking Guidance
You don’t have to tackle this decision alone. Consulting with a reputable lender can provide invaluable insights tailored to your unique circumstances. A professional can outline your options and share success stories from similar buyers, empowering you to make informed decisions about your homeownership journey.
In Conclusion
Many individuals with student loan debt have successfully realized their homeownership dreams. Engage with a lender to explore your options and gauge your readiness to achieve your goals.