Natalie Burnside, The Cobb Group brokered by eXp RealtyPhone: (843) 295-1178
Email: [email protected]
Email: [email protected]
It's common for homeowners to have both mortgage and student loan payments simultaneously. But how does student debt affect your chances of getting a mortgage in the first place?
While lenders consider all debt obligations in loan approval, you can still buy a home while paying student loans.
Lenders consider your current financial obligations, including any outstanding loan balance, in your financial statement.
Your debt to income ratio, or DTI, measures your ability to make regular loan payments, so if your student loan payments skew your DTI too much, it could be a red flag to lenders.
While mortgage lenders consider your debt-to-income ratio for mortgage approval, you don't have to be completely debt free to get a mortgage. So, you can have student loan debt and still get a mortgage!
Student loan debt won't keep you from mortgage approval, but it can make it harder to qualify. If you have reliable income and a good payment history, it's not necessary to pay off your existing debt before buying a house.
Just remember to consider the monthly student loan payments and your homeowner costs. Multiple loan payments add up quickly.
It's not necessarily harder to buy a house as student loan borrowers.
But regular student loan payments with regular mortgage payments can be expensive, so be careful to stay on top of your payments.
Student loan payment assistance programs may help with federal student loans, such as income-driven repayment plans. So explore all your options if you run into a hardship.
Originally from the midwest, Natalie and her husband Brian spent many years following his career but knew they were forever home when they made it to the Lowcountry. During vacations on Kiawah Island, they would dream of retiring to the South Carolina coast. When an opportunity presented itself to move to Bluffton much earlier than they envisioned, it was a “no brainer” and has proven to be one of their family’s best decisions. The two things Natalie loves most about the area are the community’s welcoming attitude and the always changing, but consistently breathtaking, views from the Lowcountry bridges. “It seems that everyone you meet in Bluffton and Hilton Head loves their community and genuinely wants you to fall in love with it, too…whether it’s for a week of vacation or to plant your own long-time roots.”
