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First Time Home Buyers with Student Loan Debt
There are some new guidelines coming in January for First Time Home Buyers with Student Loan Debt.  In January of 2018 Freddie Mac will begin requiring us to count either your Student Loan payment, OR .5% of the balance, which ever is higher  This is a change from the current guideline that allows us to consider the payment that is reported to the Credit Bureau.  We haven’t been able to count a $0 payment, but if you were on an IBR schedule with a payment of $21 on a $22,000 loan, we could count the $21 in your debt to income calculation.  Beginning in January, with that SAME person, we will be required to count $110.
This will cause some folks to buy smaller homes.  Will it keep First Time Home Buyers with Student Loan Debt, out of the market?  No.  These facts are sourced from the US Census Bureau, NAR 2017 Home Buyers and Sellers Generational Trends Report and a recent GO BankingRates survey.
• The home ownership rate has remained between 63% and 64% for the past 3 years, which is historically low
• Average rents have increased approximately 30% over the past 4 years
• Buyers 36 years and younger were the largest share ... more

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