Student Debt Doesn’t Mean You Can’t Buy a Home in West Chester and Liberty Township!
Student loan debt may be at all-time highs, but that hasn’t deterred people from buying homes for sale in West Chester and Liberty Township! In fact, a recent report shows that nationally, 27 percent of all homebuyers have student loan debt. And first-time buyers? A whopping 40 percent have student loans to their name.
So, how do they do it? How do they keep making monthly loan installments while saving for a down payment or paying a mortgage on their West Chester or Liberty Township home? Here’s how today’s buyers are making it happen.
They’re choosing the right loan programs. For West Chester and Liberty Township homebuyers with student loan debt, an FHA loan can be a great option. And both Fannie Mae and Freddie Mac have made favorable changes to how student loan debt factors into the mortgage qualification. In other words, student loan debt isn’t weighted as heavily as, say, a hefty car payment or outstanding medical bills.
They’re getting gifts and co-borrowing. Many homebuyers are choosing to use gift money from family members to pay for the down payment on their new West Chester or Liberty Township home. Others are choosing to co-borrow with a significant other, roommate or family member to increase the income that qualifies toward the mortgage. Both of these help lower the costs of homebuying at the outset.
But a word of caution: if you’re going to co-borrow with someone, be sure you’re clear about who is paying what each month. If your co-borrower stops paying, you’re on the hook for the full balance.
They’re taking advantage of down payment assistance programs. Saving for a down payment is often the hardest part when you’re drowning in student loan debt. Fortunately, there are hundreds of down payment (and closing cost) assistance programs that can help cover these expenses and more. We always recommend talking to your mortgage broker about the different city, state and township-level programs that you may be eligible for. And don’t forget to talk to your employer! If you work for a larger company, they may have a down payment assistance program for you to take advantage of, too!
They’re working on their credit. As we’ve mentioned before, having a great credit score means getting a great mortgage rate – and a great mortgage rate makes West Chester and Liberty Township homes for sale that much more affordable. See, a lower mortgage rate can save you hundreds of dollars each month (and thousands of dollars over the lifetime of your loan!). Today’s homebuyers are boosting their credit scores by paying down their debts, avoiding late payments and watching their credit reports closely.
As they say, where there’s a will there’s a way! And today’s young buyers a proof of that. Student loan debt can be a challenge, but it isn’t necessarily a deal breaker. If you’re ready to start shopping for West Chester or Liberty Township homes for sale, give us a call. We’d be happy to answer any questions you have about buying a home while dealing with student loan debt.