Have Student Loans? Think you Can't Buy a Home? WRONG!

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
http://actvra.in/56x7

 

Have Student Loans?

Think you Can't Buy a Home?

WRONG!

  

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 income
  • Interest-only payments
  • More

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 MaeFreddie MacFHA, 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.  

Your New Lenox - Chicagoland Mortgage Expert!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 in New Lenox - Chicagoland, 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 yourspecific 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.  

Let's talk now ...

 Have Financing Questions? Contact Me!
 
 

* Hoping to Buy or Refinance a home in the Chicagoland area?  Contact Me!  I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
I'm easily found at:

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI Licen #216987

American Portfolio Mortgage Corp.

NMLS #175656
 
Direct: 815.524.2280
Cell or Text: 708.921.6331
eFax: 815.524.2281
 
 
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                   IL Lic. #0006220  -  WI License                                                                                                     

NMLS #175656

 

Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 

 

Your Referrals & Testimonials are Always Greatly Appreciated! 

 

Email Me .. to be added to my Mortgage & Real Estate Newsletter

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Re-Blogged 8 times:

Re-Blogged By Re-Blogged At
  1. Lynn B. Friedman 08/16/2017 04:09 PM
  2. Debra Leisek 08/16/2017 06:09 PM
  3. Tony and Suzanne Marriott, Associate Brokers 08/17/2017 07:20 AM
  4. Nick & Trudy Vandekar, 610-203-4543 08/17/2017 02:47 PM
  5. Debbie Reynolds 08/19/2017 12:00 PM
  6. M.C. Dwyer 08/19/2017 10:45 AM
  7. Gabe Sanders 08/24/2017 11:00 PM
  8. Joan Cox 09/13/2017 05:53 AM
Topic:
Home Buying
Location:
Illinois Will County New Lenox
Groups:
Mortgages
Chicago Area Real Estate BUZZ!
1st Time Buyers
Buyer Information - What Buyers Need to Know in Today's Market
Bananatude
Tags:
student loans
firsttime homebuyer
student loan debt
talk to a lender
buying a home with student loans
firsttime home buyer mortgage programs
choosing your mortgage originator

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Rainmaker
532,565
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

Excellent post and one that I will be reposting for my local readers who need to understand this informatuion and know what they are going to need to begin the house hunt.

Aug 17, 2017 02:38 PM #22
Rainmaker
2,474,724
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce - Short Sale

We have physician loans in our market that have no money down (plenty of education debt) and allow purchases to seven figures...education debt is not the crippling obstacle it is believed to be in getting a mortgage.

Aug 18, 2017 03:40 AM #23
Rainer
351,096
Anna Hatridge
Goodson Realty - Bonne Terre, MO
Missouri Realtor with Goodson Realty

great information for those with student loans.  

Aug 18, 2017 07:20 AM #24
Rainer
361,873
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Gene,

A lot of people have student loans these days, it seems. Can be a hiccup, but not a hurdle.

Aug 18, 2017 10:15 AM #25
Rainmaker
3,103,607
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Gene

Comprehensive post on buying a home when you have a student loan.

Good luck and success.

Lou Ludwig

Aug 18, 2017 03:04 PM #26
Rainmaker
3,103,607
Lou Ludwig
Ludwig & Associates - Boca Raton, FL
Designations Earned CRB, CRS, CIPS, GRI, SRES, TRC

Gene

Congratulations on the gold star feature for an informative post.

Good luck and success.

Lou Ludwig

Aug 18, 2017 03:05 PM #27
Rainmaker
1,822,443
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Talk to Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

for help getting a home even if you have a school loan!

Student Loans don't have to be a deal-breaker or barrier to fulfilling your home buying dream.  

Aug 18, 2017 03:58 PM #28
Ambassador
3,162,909
Debbie Reynolds
Berkshire Hathaway HomeServices PenFed Realty, Your Clarksville Real Estate Professional - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

They have become a real problem for home buyers. I had a new RN that just couldn't buy and she was so disappointed.

Aug 18, 2017 08:18 PM #29
Rainmaker
284,491
M.C. Dwyer
Century 21 Showcase REALTORs - Felton, CA
Santa Cruz Mountains Property Specialist

Your point is well made.   For some people and for some lenders, student loans may be an issue but the point is not to make assumptions that having student loans automatically means you can't buy a home.    Share-worthy - thank you!

Aug 19, 2017 10:38 AM #30
Ambassador
2,046,733
Debe Maxwell, CRS
www.AtHomesCharlotte.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

What wonderful advice, Brotha Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi! Love this post and will certainly be forwarding it on to some of my buyers. It's nice to allay their fears and this seems to be the #1 fear for some of our millennial buyers too. 

Aug 19, 2017 01:57 PM #31
Rainmaker
107,083
Susie Kay
Ultima Real Estate - Plano, TX
North Dallas Specialist

I saw that Debbie reblogged your content and thought I sent you a quick note. Thanks for sharing such great info, Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi !

Aug 19, 2017 02:42 PM #32
Ambassador
2,386,372
Paul S. Henderson, CRS, REALTOR®,
RE/MAX Professionals. - Tacoma, WA
Tacoma Washington Agent/Broker & Market Authority!

This myth has been getting traction lately and I am glad you are shedding light on this topic Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi 

Aug 19, 2017 09:22 PM #33
Rainer
82,333
Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

Great post with important information.

Thank you.

Aug 20, 2017 12:53 AM #34
Rainmaker
4,060,053
Roy Kelley
Realty Group Referrals - Gaithersburg, MD
Roy and Dolores Kelley Photographs

Congratulations on your feature recognition. This is important advice to share.

Aug 21, 2017 04:02 AM #35
Rainmaker
253,262
Dan Derito
Success! Real Estate - Brockton, MA

Thanks for discussing the elephant in the room Gene.  These loans are stifling the careers of too many young folks.

Aug 21, 2017 04:58 AM #36
Rainmaker
2,400,386
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

Luckily student loans aren't as debilitating as people think. Thank goodness for that! Good luck to everybody looking to buy. :)

Aug 23, 2017 09:12 PM #37
Rainmaker
2,400,386
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

This is totally the elephant in the room and that's a really good way to put it, and should never be ignored, Dan Derito

Aug 23, 2017 09:13 PM #38
Rainmaker
811,700
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Love your post on this topic!  It just so happens that my daughter is about to start the process of buying a home next spring and has a small student loan.   I'll share your information with her.  She's in Iowa and is a nurse.  So excited for her to have her own home!  Great information Gene!

Aug 26, 2017 09:02 AM #39
Rainmaker
637,403
Sheri Sperry - MCNE®
Coldwell Banker Residential Brokerage - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Gene,

This is a timely blog for graduating students who are getting out in the world and want to settle down and don't think they have the options to buy a home. 

Sep 06, 2017 04:51 AM #40
Rainmaker
400,515
Dave Halpern
Keller Williams Realty Louisville East (502) 664-7827 - Louisville, KY
Louisville Short Sale Expert

Gene, all Realtors and loan officers should read your blog post! More people will become homeowners with this information.

Sep 10, 2017 07:34 PM #41
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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