Can I get a home mortgage if I have a lot of student loan debt?
Renting & Real Estate
Star_1320 asked:
I have debt from school, but I am interested in buying a home. Would I be able to get a mortgage?
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I have debt from school, but I am interested in buying a home. Would I be able to get a mortgage?
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November 26th, 2008 at 11:32 am
If you are able to get such a loan you will probably find the student debt will be rolled into the mortgage which could be a good thing, depending on your circumstances. Go to a few lender websites and see what the criteria is and repayment schedule for such a loan so you know what to look out for.
November 29th, 2008 at 3:31 pm
most likely. You will just have to show them that you are able to pay your mortgage payment, insurance and taxes and also your student loans. They wont give you a mortgage loan if your credit ratio is out of whack, meaning that you owe a percentage more than what you earn per the credit you do have. You can get someone to cosign for you if anyone will do that for you, that would be your best option if you see some negative responses. Do not get tied into an adjustable rate mortgage, just some added advice.
Also, apply for the federal first time home buyer grant. It is money for you to use to apply to the mortgage or down payment that the government grants first time home buyers with some general stipulations that you do not sell within 5 years, or rent within 2 or 3 years. But its money you dont have to pay back. Its a grant.
Good luck!
December 2nd, 2008 at 4:06 pm
i suggest going to this site and filling out the form. it’ll help you lower your student loans significantly!
December 3rd, 2008 at 2:32 pm
Student loan debt is not an issue, so long as it’s been paid as agreed upon.
It is treated the same as credit card debt or car loans. The lender will total your monthly obligations and weigh them against your gross monthly income. Included in this calculation is your primary housing debt after the loan closes, and any revolving, installation, other mortgage, or lease obligation. So long as you are using less than half your monthly income for fixed expenses, you’ll be okay.
But note that if the debt is deferred, the lender will act as though you need to start paying the debt today. The lender will put in a monthly payment obligation even if you don’t have to start paying for a few years.
December 7th, 2008 at 1:14 am
In most cases, yes. Student loan debt is considered as part of your total debt to income ratio. If the ratio meets the lenders limits, then you could qualify with the debt included. If it is deferred student loan debt, then the lender will want to know what the deferral terms are to determine when the repayment period would start.