Prevent Your Homeownership Plans from Being Delayed by Student Loans

If you have student loans and are aiming to buy a home, you likely have questions about how your debt will influence your plans. Are you required to fully repay your loans before pursuing homeownership, or could you still qualify for a mortgage despite this debt? Here's an overview of the latest information to provide you with the answers you need.

According to an article on Bankrate,

"Approximately 60 percent of American adults burdened with student loan debt have postponed crucial financial decisions as a result. Among Gen Z and millennial borrowers specifically, this figure increases to 70 percent."

This involves one of the most important financial decisions you'll ever make— buying a home. However, it's crucial to recognize that even with student loans, delaying your home purchase might not be necessary. While everyone's situation varies, achieving your goal may be more attainable than you realize. Here's why.

Can You Obtain a Mortgage with Outstanding Student Loans?

In an annual report released by the National Association of Realtors (NAR), it was revealed that 38% of first-time buyers carried student loan debt, with the average amount being $30,000.

This suggests that other individuals in a comparable situation were able to qualify for and purchase a home despite also having student loans. You may be able to do the same, particularly if you have a reliable source of income. As stated in an article from Bankrate:

"...it's possible to manage both student loans and a mortgage simultaneously... If you're dealing with student loans and aiming for a mortgage, there are numerous home loan programs for which you could meet the criteria..."

The key takeaway is that for many individuals, homeownership remains an achievable goal, even with outstanding student loan debt.

You don't need to navigate this alone. The most effective approach to decide on your goals and determine your next steps is by consulting with professionals. A reliable lender can guide you through your options according to your circumstances and provide insights based on the experiences of other buyers.

Bottom Line

Many individuals burdened by student loan debt have successfully purchased their own homes. Discuss your options with a lender to evaluate your progress and determine how close you are to achieving your goal.