Don’t Let Student Loans Hold You Back from Homeownership

Don’t Let Student Loans Hold You Back from Homeownership

Did you know? A recent survey found that 72% of individuals with student loans believe their debt will postpone their ability to purchase a home. If you’re feeling the same way, you might be asking yourself:

Do you need to completely pay off your student loans before buying your first home?
Or is there a chance you can still qualify for a mortgage even with existing debt?

It’s completely normal to have these questions, especially when preparing for such a major financial step. But you might be unnecessarily delaying your path to homeownership.

Can You Qualify for a Home Loan if You Have Student Loans?

At the core, your main concern is whether having student debt prevents you from purchasing a home. According to Yahoo Finance:

" . . . student loans don’t have to get in your way when it comes to becoming a homeowner. With the right approach and an understanding of how debt impacts your home-buying options, buying a house when you have student loans is possible."

And the statistics support this. A yearly study from the National Association of Realtors (NAR) reveals that 32% of first-time homebuyers had student loan debt.

Although every person’s financial situation is different, your goal might be more achievable than you think. Many individuals with student loan debt have successfully qualified for and purchased a home. That should give you some confidence—it’s still possible, even for first-time buyers. It might also help to know that the median student loan debt was $30,000. As noted in a Chase article:

“It’s important to note that student loans usually don’t affect your ability to qualify for a mortgage any differently than other types of debt you have on your credit report, such as credit card debt and auto loans.”

If you have stable income and strong overall financial health, owning a home could still be within your reach. In short, student debt doesn’t automatically mean you have to delay buying.

Bottom Line

Just because you have student loans doesn’t mean homeownership is out of the question. Speak with a lender to get a better idea of your affordability and see how close you are to becoming a homeowner.