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

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Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI

 

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. #031.0006220  -  WI License #216987                                                                                                    

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! 

 

 

Comments(37)

Show All Comments Sort:
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

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

Totally agree, Sally K. & David L. Hanson ... there ARE programs available to those with all manner of education debt.  Those helpful programs paired with the resolve/ability to buy under the rules/regulations of the program will result in a home purchase.  And that's where you and I can help ...


Gene

Aug 18, 2017 12:30 PM
Anna Hatridge
R Gilliam Real Estate LLC - Farmington, MO
Missouri Realtor with R Gilliam Real Estate LLC

great information for those with student loans.  

Aug 18, 2017 07:20 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Thank you, Anna Hatridge ...


Gene

Aug 18, 2017 12:30 PM
Dorte 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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

You are absolutely right, Dorte.  These programs can help provide that "foot in the door" to the real estate market ...


Gene

Aug 18, 2017 12:32 PM
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
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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Appreciate it, Lou Ludwig ... hope the info helps many ...


Gene

Aug 19, 2017 10:49 AM
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
Retired 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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Thank you, Sharon Tara ... the important thing is that they ask questions and get the answers they need to move forward ...


Gene

Aug 19, 2017 10:50 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

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

Was that just recently, Debbie Reynolds ... as changes took place fairly recently that might help her situation?  Might be worth re-visiting with her lender ... just a fyi ...


Gene

Aug 19, 2017 10:51 AM
M.C. Dwyer
Melody Russell Team at eXp Realty of California, Inc. - Felton, CA
MC Dwyer-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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Thank you, M.C. Dwyer ... and please ... share away!!  Because you're so right about making assumptions.  They may be assuming incorrectly ...


Gene

Aug 19, 2017 10:52 AM
Debe Maxwell, CRS
Savvy + Company (704) 491-3310 - Charlotte, NC
The RIGHT CHARLOTTE REALTOR!

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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
The main message is to have them seek answers prior to making assumptions, Debe ... Only when they have the facts will they know what opportunities they possess ...
Good Luck!
Aug 20, 2017 01:01 PM
Susie Kay
Ultra Real Estate Dallas Fort Worth - 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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
Thanks, Susie .. Hope the info proves helpful in upcoming transactions ...
Aug 20, 2017 12:59 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
The media likes and perpetrated the drama, Paul ... That doesn't help. Paired with a common sense when purchasing, buying can be accomplished in many cases. Interested buyers need to get the facts as they pertain to them personally ...
Aug 20, 2017 12:58 PM
Shahar Hillel
Encino, CA
Mortgage Consultant, Loan Officer.

Great post with important information.

Thank you.

Aug 20, 2017 12:53 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
Thank you, Shahar ..
Aug 20, 2017 12:54 PM
Roy Kelley
Retired - Gaithersburg, MD

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

Aug 21, 2017 04:02 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Thanks, Roy Kelley ... 


Gene

Aug 21, 2017 07:06 AM
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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

No doubt, they are a huge problem Dan Derito ... but for some, the stifling is done personally when they assume they can't buy because of the loans.  As always, my advice is to talk to an experienced LO.  Get the facts ... and then move forward according to them.


Gene 


 

Aug 21, 2017 07:08 AM
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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Laura Cerrano ... it really depends on the individual's loans.  For some, the loans may still be an issue.  For others, no.  Anyone with student loans .. and wanting to buy ... needs to have an LO run an analysis of their individual situation.  Only then will they have a true answer ...


Gene 

Aug 26, 2017 01:58 PM
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
Jan Green - Scottsdale, AZ
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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Thanks, Jan Green ... hope the info is useful in some way.  Where does your daughter live in Iowa?  Did she attend school there?  Our oldest son went to Univ. of Iowa ... loved the school and the area.  Good luck with the homebuying/financing ... give me a shout if I can answer any questions ...


Gene

Aug 26, 2017 01:55 PM
Sheri Sperry - MCNE®
Coldwell Banker Realty - 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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Thanks, Sheri Sperry - MCNE® ... I think too many prematurely take themselves out of the house hunt thinking they can't buy because of their student loans.  Hoping this info proves motivating to them ... at least ask the question!


Gene

Sep 07, 2017 12:21 PM
Dave Halpern
Dave Halpern Real Estate Agent, Inc., Louisville, KY (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
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi
Thanks so much for your kind comment, Dave ... I'm glad you find the info I share beneficial ..
Gene
Sep 11, 2017 07:08 AM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good morning Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi,

I must have been living under a rock not to see your featured post! Gita Bantwal just re-blogged it so I caught it. You are the Illinois answer to those consumers with student loans. Love that you will explore all options and make it happen!!

Aug 22, 2018 04:48 AM
Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

Hard to keep up with all the bloggers/blog here on AR Dorie Dillard.  Glad you found this post informative.  Thank you to Gita Bantwal for her re-blog ...


Gene 

Aug 22, 2018 12:01 PM