Student loan debt shouldn’t prevent you from buying a home
As of the first quarter of 2019, student loan debt is $1.5 trillion in the United States. Homebuyers are waiting until their mid-thirties to take the plunge, yet, the majority of homeowners continue to be college graduates. How do they afford it?
Student loans do not tell your entire financial history. If you have healthy credit, a good job and some savings, you are still a good candidate for a loan. Remember, having some debt and being able to pay it off is better for your credit than having no debt at all. If you are smart about paying your student loans, you are better off than if you never had them to begin with.
A lot of debt? Lenders recognize that certain high-paying professions require advanced degrees and more debt accrued over those extra years. That’s why we offer special financing programs for doctors, dentists and veterinarians.
What about defaults? While a student loan may not put at risk your chances of buying a home, unfortunately a default will almost certainly delay it. If you were in good credit standing before the default, it may not take that long to repair, but many graduates have little to no credit at time of default, which can hurt. If you haven’t yet, take action immediately to get back on track.
Holding debt can be scary and it should not be taken lightly. Debt can easily accrue if not managed properly. Much of the decline in millennial homeownership has been attributed to student loan debt, but it also coincides with the rate of student loan defaults. Just because you have a student loan, doesn’t mean you shouldn’t at least meet with a lender to discuss your options.
The above information is for educational purposes only. All information, loan programs and interest rates are subject to change without notice. All loans subject to underwriter approval. Terms and conditions apply.