Did you know that 72% of people with student loans believe their debt will delay their ability to buy a home? Maybe you're one of them, wondering what your options really are.
- Do you really have to wait until those student loans are paid off before buying your first home?
- Or could it be that you might still qualify for a home loan—even with that student debt hanging around?
It’s totally normal to have questions like these—buying a home is a big deal. But here’s the thing: you might be putting your homeownership dreams on hold when you don’t actually need to.
Can You Qualify for a Home Loan if You Have Student Loans?
At the end of the day, what you really want to know is—can you still buy your first home if you’ve got student debt? Well, according to Yahoo Finance, here’s the scoop:
" . . . 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 numbers back it up! A yearly report from the National Association of Realtors (NAR) shows that 32% of first-time homebuyers had student loan debt (check out the graph below):
Everyone’s situation is a little different, but your goal might be more within reach than you think. Lots of people with student loans have still been able to qualify for—and buy—a home. So if you’re a first-time buyer, let that be a bit of encouragement. And just so you know, the median student loan debt was $30,000. As Chase points out in an 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’ve got a steady income and your overall finances are in good shape, owning a home could still be totally doable. Having student loans doesn’t automatically mean you have to put off buying a house.
Bottom Line
Just because you have student loans doesn’t mean buying a home is off the table. Before you count yourself out, chat with a lender—they can help you understand what you can actually afford and how close you might be to making that first move toward homeownership.
