First Home Equity Loans

As a Mortgage Advisors, we know that more than 43 million Americans have student loans. Many more are hoping to buy a home while still paying off student debt. The good news is that student loans are treated just like any other debt when applying for a mortgage. Having student loans can be more challenging, but it doesn’t disqualify you by any means.

Here’s what you need to know if you’re hoping to buy a home with student loans. Lenders look at your debt-to-income ratio, and some loan programs allow you to have up to a 50% DTI. Meaning your monthly debt payments come to 50% of your income.

Keep in mind that having lots of debt may result in a higher interest rate on your loan, making it harder to pay off your student loans since you’re tying up more of your monthly income. While you can pay off your loans before applying, remember that you’ll need funds for a down payment and closing costs. Consolidating or refinancing your loans can also help you get a lower rate and monthly payment on them.

The key to managing a mortgage and student loan debt is having a solid budget in place and exploring income-based programs with federal student loans. If you have more questions, reach out to me today to discuss your options.

If you are looking to learn more about getting a mortgage, you would be well served to speak to Sarah or any one of our First Home Equity Loans Mortgage Advisors.

Connect with us on your favorite Social Media… Facebook | LinkedIn | Instagram