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You Can Still Buy A Home With Student Loans

February 10, 2022 | Real Estate Exchange
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You Can Still Buy A Home With Student Loans

If you’re thinking about buying a home, you may be curious how your student loan debt might affect those plans. Is it necessary to wait until you’ve completed the payment of your student loans before you purchase your first home? Or could you qualify for a home loan with that debt?

To help answer your questions, let’s take a peek at what the latest data shows. This will prepare you for what to expect and what to do next to accomplish your goal of becoming a homeowner. Despite everyone’s situation being unique, your dreams may be more within your reach than you think.

Do you have to defer your homeowernship plans because of student loans?

If you’re nervous that your student loans will cause you to have to put your homeownership plans on the back burner, you’re not the only one. To be more specific, many first-time buyers think they have to put off their plans. As stated by data from the National Association of Realtors (NAR):

When asked specifically about purchasing a home, half of nonhomeowners say student loan debt is delaying them from purchasing a home (51%).”

When the students were asked why their loans are putting their plans on hold, three important concerns appeared:

  • 47% say their student loans make it more difficult to put away money for a down payment
  • 45% say they believe they can’t qualify for a home loan because of their debt
  • 43% say they think the delay is necessary even though they’ve never submitted an application for a mortgage

If you can relate to any of these concerns, you should know you may not need to delay buying a home. And here’s why.

Is it possible to qualify for a home loan if you have existing student loans?

The same NAR report data shows that many homeowners have student loan debt:

“Nearly one-quarter of all home buyers, and 37% of first-time buyers, had student debt, with a typical amount of $30,000.”

That means despite having student loan debt, many people in similar situations were able to qualify for and buy a home. It’s possible for you to do the same, , especially if you have a steady source of income. Apartment Therapy drives shares this point by saying:

“. . . buying a home with student loans is possible, experts say. The proof is in the numbers, too: Some 40 percent of first-time homebuyers have student loan debt, according to the NAR study.”

The bottom line is, for many people, homeownership is attainable even with student loans.

 

If your looking to make important decisions about your homeownership goals, the best thing you can do is speak with professionals. An experienced real estate agent can take at your individual situation and help you weigh your options. They can also connect you with a mortgage professional and other helpful people in the industry who can offer assistance. You are not alone on this journey – rely on the experts so you have all the details you need to make an informed, well-thought-out decision.

Conclusion

Many other people with student loan debt are already reaching their homeownership goals. It might be time for you to make your dreams a reality. If you’re ready to get started, connect with one of our professional real estate advisors today.

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JoAnne Hamberg, Broker

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