Important Info for Buyers With Student Loan Debt
If you currently have student loan debt and are looking to buy a home, we’ve got something very important to share on this edition of “Coffee with Connie.”
What you need to know is that after June 29, the government regulations on financing are changing. It’s going to be more difficult to qualify for a mortgage on a home if you have student loan debt.
As of now, lenders can use lowered or deferred payment amounts when qualifying mortgages. After June 29th, that won’t be the case anymore. After that day passes, new government regulations state that lenders will need to use the total the loan repayment amount from a debt-to-income ratio standpoint when considering you for financing on a mortgages.
By using the total repayment amount rather than payments on lower or deferred plans, buying power will decrease. This will have an especially significant impact on millennial home buyers, who make up a large portion of first-time buyers in the market. Long story short, those with student debt or lowered/deferred payments will have a much harder time qualifying for financing.
The date is approaching fast, so you cannot afford to wait if you have student debt. You need to see a lender soon before these regulation change and have a negative impact on your ability to buy a home.
If you or someone you know has been thinking about buying a home and also has student loan debt, we would love to help. We can give you an idea of what buying will cost now vs. what it will cost later. Give us a call or send us an email and we’d be happy to help out.