Myth 1 : My Student Debt Means I Won ’ t Qualify
If you have student loans and are looking to buy a home , you may be wondering how that debt could impact your plans . Do you have to wait until you ’ ve paid off your loans ? Or could you qualify for a home loan with that debt ? To give you the answers you ’ re searching for , let ’ s take a look at what recent data shows .
Do You Have To Delay Your Plans Because of Student Loans ?
If you ’ re worried your student loans mean you have to put your homeownership goals on hold , you ’ re not alone . In fact , many first-time buyers in this situation believe they have to delay their plans . According to data from the National Association of Realtors ( NAR ):
“ When asked specifically about purchasing a home , half of nonhomeowners say student loan debt is delaying them from purchasing a home ( 51 %).”
When asked why their student loans are putting their plans on the back burner , three key themes emerge :
• 47 % say their student loans make it harder to save for a down payment
• 45 % say they think they can ’ t qualify for a home loan because of existing debt
• 43 % say they believe the delay is necessary even though they ’ ve never applied for a mortgage
No matter which reason resonates most with you , you should know a delay may not be necessary . While everyone ’ s situation is unique , your goal may be more within your reach than you realize .
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