Gene Mundt, Chicagoland Mortgage Originator provides hope for those with student loans considering buying a home.
Do you …Want to buy a home? Have Student Loan debt? If you answered “Yes” to the questions above, it’s important for you to know that contrary to what is commonly seen and believed, it is possible to buy a home when you have Student Loans … and many are doing it.
Student Loans do not have to stand in the way of home ownership. You can buy and finance a home purchase successfully. How? Here’s some information …Remember back to your Student Loan search? There were multiple options for you to consider, right? There were:
- Private Loan options
- Federal Loan Options
- Differing loan terms
- Differing repayment plans
- Options to defer payments
- Re-payment that could be based on future incomeInterest-only payments
Well, just as there were differing loan options available to you then, there are also differing mortgage options available now. Mortgage options that can help you buy a home.
In order to accomplish this, it is, however, important to choose and work with a Mortgage Originator with experience in successfully closing mortgages for Borrowers that have Student Loans …
Why is this so important? Student Loans can present a bit more of a challenge when making application for a mortgage. Here’s how that’s true …
Refer back to all the many types of Student Loans and repayment options mentioned above. Now consider, each of them reports differently to the Credit Bureaus.
Some Student Loans report the balance of the loan only. Others report only the minimum payment requirement. Still, others show that a deferment is in place and that no payments are currently being made.
And the majority of Student Loan providers do not report the actual terms of the loan held. They also do not report the full payment required to pay off that loan in its entirety (known as Fully-Amortized Payment).
Now add the following challenges to the mix: Fannie Mae, Freddie Mac, FHA, and VA are the biggest entities that provide guidance on underwriting home loans to their standards.
They each have their own rules and guidelines regarding Student Loans and how they view and treat that debt. It would be virtually impossible to reveal all those rules and guidelines here with any clarity.
But it’s easy to understand why working with a Mortgage Originator that is inexperienced in working with Student Loans could prove disastrous and costly to a Borrower.
There’s little doubt: Buying a home while having Student Loans can prove challenging … financially and within the mortgage process itself.
But it’s important that you don’t automatically assume that you can’t buy just because you have Student Loans.
So given all the above, what’s the best plan of action, if you hope to buy a home but have Student Loan debt?
In order to get a true factual picture of your home buying opportunities and options, you and I need to speak. I will gather, then review, your personal financial situation to best assess what home buying and financing options you have. Until that review is conducted and completed you will not know where you stand or what your true home buying – financing options are.
During that review, it will be important that you have the following info and documentation available to share with me:
- Your Student Loan Statements
- Your Loan Agreements
So please, have them handy when we speak.
These documents will provide me the facts regarding your Student Loan debt and repayment … and will allow me to assess how your specific Student Loan debt will be treated on a monthly mortgage payment basis.
This assessment is vitally important. It will determine if you can move forward with a home purchase immediately. Or should that not be possible, provides us the information we need to prepare you to buy in the future.
If you go away with just one lesson learned here …It’s to not get discouraged or jump to conclusions regarding your ability to buy a home. Student Loans don’t have to be a deal-breaker or barrier to fulfilling your home buying dream.