It is not a secret that student loans can make a home purchase a challenge.
''Seven in 10 seniors (69%) who graduated from public and nonprofit colleges in 2014 had student loan debt, with an average of $28,950 per borrower. Over the last decade—from 2004 to 2014—the share of graduates with debt rose modestly (from 65% to 69%) while average debt at graduation rose at more than twice the rate of inflation.'' Average debt of a California student is: $21,382 (*check your state here).
The National Association of Realtors® and SALT® conducted a survey, 2016 Student Loan Debt and Housing Report to see what impact student loan debt is having on housing.
If you have a excessive student debt.. you might want to wait with your next major events, such as buying your own place, getting married, and having kids...And it is OK. Only 33% of 2015 home-buyers were first time purchasers ( according to a N.A.R. survey). A student loan by itself can not prevent you from getting a mortgage, but it effect your debt-to-income ration. Find a job you like, build your credit and income history for a few years, and when you are ready ~ take a leap into home-ownership!
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