Categorieshomebuyers April 8, 2024 By

Don’t Let Your Student Loans Delay Your Homeownership Plans

If you have student loans and want to buy a home, you might have questions about how your debt affects your plans. Do you have to wait until you’ve paid off those loans before you can buy your first home? Or could you still qualify for a home loan even with that debt? Here’s a look at the latest information so you have the answers you need.

A Bankrate article explains:

“Roughly 60 percent of U.S. adults who have held student loan debt have put off making important financial decisions due to that debt . . . For Gen Z and millennial borrowers alone, that number rises to 70 percent.”

This includes one of the biggest financial decisions you’ll ever make: buying a home. But you should know that waiting to buy a home may not be necessary, even with student loans. While everyone’s situation is unique, your goal may be more within your reach than you realize. Here’s why.

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

According to an annual report from the National Association of Realtors (NAR), 38% of first-time buyers had student loan debt, and the typical amount was $30,000.

That means other people in a similar situation could qualify for and buy a home even though they also had student loans. And you may be able to do the same, especially if you have a steady source of income. As an article from Bankrate says:

“. . . you can have student loans and a mortgage at the same time. . . . If you have student loans and want a mortgage, there are multiple home loan programs you might qualify for . . .”

The key takeaway is, for many people, homeownership is achievable even with student loans.

You don’t have to figure this out on your own. The best way to decide on your goals and next steps is to talk to the professionals. A trusted lender can walk you through your options based on your situation and share what’s worked for other buyers.

Bottom Line

Many other people with student loan debt can buy their own homes. Talk to a lender to discuss your options and see how close you are to reaching your goal.

Your Questions. Our Answers

Q. Can I still buy a home in Chicago if I have student loans?
A. Yes! A Real Estate Agent in Chicago can help you find a home that fits your budget, even with student loans. They know the tips and tricks to make it work!

Q. What advice does KM Realty Group give for buying a home with student debt?
A. Our real estate agents in Chicago recommend improving your credit score, looking for homes within your budget, and exploring loan options tailored for those with student debt.

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