First-Time Home Buyers Don’t Let Student Loan Debt Stop You



Image courtesy of Stuart Miles@freedigitalphotos.net

Student Loan Debt

Being a First Time Home Buyer can be an exciting adventure. The feeling of freedom and accomplishment that goes with it can be exhilarating to say the least. However, for most people buying a home is just a distant dream especially if they are burdened with huge STUDENT LOAN DEBT.

Let’s face it. Most people who have amassed thousands of dollars in student loan debt do not make enough to qualify for homeownership. Does this mean that they have to give up on their dreams of buying a home or wait until they have paid off all their loans? Certainly not. Here are some home buying tips that can improve the chances of being qualified for a home loan.

Wait for the Right Time

Most Federal Student Loans have a 6-month “grace period” in which new graduates have time to find a job before beginning loan re-payment and incurring interest. Do not apply for a home loan until the 6-month grace period has passed. Doing so within this period will only ruin your chances of qualifying for a home loan.

Consolidate your Student Loans

Pay off your credit card and other loans during the 6-month grace period to improve your monthly DEBT-TO-INCOME Ratio. Find out if you qualify for any STUDENT LOAN FORGIVENESS. Hopefully, this move will improve your credit score and increase your chances of securing a home loan.

Save Up for the Down Payment

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While most lenders require buyers to put 20% of the purchase price up front, some are willing to work with less.

Find a Co-Borrower

Do you have a significant other or family member who could sign a co-mortgage? Having a co-borrower with GOOD CREDIT SCORE can help you qualify for a joint mortgage and take you a step closer to your dream.

Apply for an FHA Loan

FHA Loans are ideal for people with higher debt-to-income ratio. However, they only work if you are paying a reasonable amount on your student loans. 

Buying a home for the first time is very much possible even if have tons of student loan debts under your name. You just need to know how to do it.

Let Me Help You Find That First-Time Dream Home

If you are still not sure whether it is the perfect time to buy or sell your home, please feel free to contact me at 678-656-6627, and I will do my best to help you do what you have set to accomplish. You can also visit my site at www.pamsantoro.com  for more tips on selling or buying a home.  Remember, no one sells a home like a Mom!