What CAN Go Hand-in-Hand? Home Buying & Student Loans!

By
Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI
https://activerain.com/droplet/5hH2

 

 

What CAN Go Hand-in-Hand?

Home Buying & Student Loans!

 

Conduct a search on the topic "Home Buying with Student Loans" and pages and pages or articles, information, advice, and opinions pop-up ... 

 

"Do Student Loans Affect Buying a House?"
 
"How Student Debt Can Ruin Home Buying Dreams" 
 
"Here's How To Buy A House When You Have 
Student Loan Debt"
 
... each are an example of the many such articles I found when I conducted my search today.  Each article addresses the very real worry that too many hopeful home buyers face as holders of Student Loan debt.
 
 
 
The focus of many of these articles is often placed on just how overwhelming Student Loans can be financially.  They're uber-focused on challenges that can exist.  
 
Many portray a bit of defeatist attitude ... 
 
And that's sad because as a result after reading them, too many people holding Student Loans assume that they have no route to successful home buying.  They don't ask questions or make any inquiries.
 
And that's simply not true.  
 
 
Home buying options CAN exist for those holding Student Loans ...  
 
Mortgages for home buying and Student Loans CAN go hand-in-hand.  The outcome greatly depends on the type of Student Loan held by the loan applicant and what type of mortgage is being pursued when seeking home financing.  
 
Finding the options that exist for Student Loan holders can be likened to creating a new complex recipe in a kitchen.  Many ingredients, differing measurements, and cooking options are considered to find the successful outcome hoped for. 
 
Some of the many "ingredients" that must be considered by the loan officer (chef) of a Student Loan-holding mortgage applicant are:
 
  • How is the mortgage applicant's Student Loan reported to the Credit Bureaus?
  • Is a deferment in place?
  • Are payments currently being made on the Student Loan(s)
  • What are the terms of the loan(s)?
  • What is the balance of the loan(s)?
  • What mortgage program best fits the applicant?
  • What "rules and regulations" for underwriting exist if using FHA, VA, Freddie Mac, Fannie Mae?  
  • Which serves the applicant's interests best?
  • More ... 

 

Because there are so many "ingredients" for loan officers to consider while finding an applicant's perfect recipe ... no one should automatically assume that a "recipe" for them successfully buying a home doesn't exist.  

And should a path to homeownership not currently exist for you?  At a minimum, you're educated, equipped with information and a plan, and can start gathering your "ingredients" for successful home buying in the future.
 
What I'm really trying to say, accomplish, and  impress upon anyone holding Student Loans is this:  
 
Don't automatically assume the negative!
Ask questions!
Get the FACTS!
 
Have a conversation with a Loan Officer experienced and knowledgeable in successfully closing mortgages for those that hold Student Loan(s).  Don't give up on your dream ... 
 
Here's a video I've put together that 
addresses this issue:
 
 
 
 
Please share it with others that you know that have Student Loans and a dream of home buying.
 
 
Let's talk ... ask me your questions! 
 

 
 
Contact me today if you hope to buy in the New Lenox, Will County, Chicagoland - IL - WI area.
 
I'm easily found at:

 
 
Gene Mundt
 
Mortgage Originator - NMLS #216987 - IL Lic. 031.0006220 - WI Lic. #216987
 
 
American Portfolio Mortgage Corp.
NMLS #175656
 
 
 
Direct: 815.524.2280 
Cell/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! 

 

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

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Sally K. & David L. Hanson 03/18/2019 03:54 PM
Topic:
Home Buying
Location:
Illinois Will County New Lenox
Groups:
Mortgages
Chicago Area Real Estate BUZZ!
1st Time Buyers
Bananatude
WillCounty
Tags:
credit report
debt
student loans
solutions
mortgage options
student loan debt
buying a home when you have student loans

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Ambassador
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George Souto
George Souto NMLS #65149 FHA, CHFA, VA Mortgages - Middletown, CT
Your Connecticut Mortgage Expert

Gene student loans present multiple challenges, so it is import to talk to a knowledgeable experienced Loan Originator to checkout options when it comes to mortgages.

Mar 18, 2019 01:35 PM #4
Rainmaker
3,238,737
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

Excellent advice...assuming is never a good thing in any business...

Mar 18, 2019 03:51 PM #5
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Debe Maxwell, CRS
www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC
Charlotte Homes for Sale - Charlotte Neighborhoods

Loved your video, Gene and this is what happens to our side of the business as well. We hear many clients with student loans say that they can't wait to pay off their loans so they can buy a home. After being encouraged to talk to one of our lenders, there are options out there for many of them. 

It always pays to ask the experts, doesn't it?

Great post, chock-full of sage advice, as always Brotha Gene! 

 

Mar 18, 2019 04:36 PM #6
Rainmaker
672,505
John Juarez
The Medford Real Estate Team - Fremont, CA
ePRO, SRES, GRI, PMN

I agree, Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi, there is a path to ownership for many who have student loan dept. They may need to look broader and longer to find the appropriate program and the right loan officer but doing so is so much better than the alternatives of giving up. Another untenable option…waiting until the debt has been retired to buy a home while the ex-student watches home prices climb and climb.

 

Mar 18, 2019 08:11 PM #7
Rainmaker
2,751,873
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

You just would never think that was the case, but I guess it can be in this particular case.

Mar 18, 2019 11:43 PM #8
Rainmaker
2,751,873
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I think everybody has student loan debt and a lot of us are going to graduate school. John Juarez

Mar 18, 2019 11:44 PM #9
Rainmaker
1,942,785
Andrew Mooers | 207.532.6573
MOOERS REALTY - Houlton, ME
Northern Maine Real Estate-Aroostook County Broker

The graduate with two college degrees in archeology, another in Italian language who is hustling tables at the Olive Garden with a quarter million dollar debt. Not just doctors and lawyers with extended education coming on wheeling with heavy duty debt.

Get a degree in something you can use and never undersell the two year technical approach or using the GI bill to foot the cost of college because you served for Uncle Sam. Saving for college, working during those 4 or more years, budgeting any of your bills and learning to save living on what you do make for take home pay. Welcome to real World kids. 

Mar 19, 2019 03:35 AM #11
Rainer
514,581
Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Thanks for giving hope to to hopeless!!!

Because there are so many "ingredients" for loan officers to consider while finding an applicant's perfect recipe ... no one should automatically assume that a "recipe" for them successfully buying a home doesn't exist.

Mar 19, 2019 03:55 AM #12
Rainmaker
3,242,119
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Gene. I am a proponent of paying back what you borrow including student loans. That said, if your situation provides an opportunity to borrow money to purchase a home you should not be held back. My experience is people in these situations should consult with a mortgage broker professional such as yourself who have a wide variety of sources to consider. Enjoy your day.

Mar 19, 2019 05:24 AM #13
Rainmaker
2,107,601
Sharon Tara
Sharon Tara Transformations - Portsmouth, NH
New Hampshire Home Stager

Excellent advice! This is so important. Too much of what we find for information on the internet is negative. I love that you give positive and very helpful advice...I'm sure this will make a difference for many home buyers who have student loans that have read other more negative articles.

Mar 19, 2019 05:37 AM #14
Rainer
495,133
Dörte Engel
RE/MAX Leading Edge - Bowie, MD
ABC - Annapolis, Bowie, Crofton & rest of Maryland

Dear Gene,

In our area, there is a loan that includes a grantof up to $15k to pay off some of the student loans with the purchase of a home. Not sure how it works, but it seems like a great idea to attract first-time home buyers.

Mar 19, 2019 05:41 AM #15
Rainmaker
631,018
Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

And once again I am on the other side of the fence from most folks who posted replies here.

I have a 28 year old son who is making $500/month student loan payments for the next 8 years. If he wanted to buy a home...which he has no desire to do...it would be at the very low end of the market.  Now..don't think he has a need for a new car as his is a 2006 Chevy and has 160K miles on it.

I wish he would have taken the route his sister took who applied for every scholarship out there and has no student loan debt.  She is soon to be 24, has passed all CPA exams and is simply waiting/working the time frame out to be a CPA. She makes a very tidy living at such a young age with her job and she also has Zero desire to own a home. 

So one can afford a nice home but does not want to buy and one can afford an entry level home and also does not want to buy. They both want to stay unattached to a piece of real estate that is expensive. 

There it is from our angle.

Mar 19, 2019 08:30 AM #16
Rainmaker
3,306,370
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Gene - when we assume or presume "danger" is likely not far behind. Expert advice and guidance matter. A lot. 

Mar 19, 2019 09:29 AM #17
Rainmaker
3,195,354
Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Gene what an awesome post and to boot it has a gold star to it, well deserved, Endre

Mar 19, 2019 10:40 PM #18
Rainmaker
2,446,386
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Relevant this subject is...I think back to my college days and remember being tempted when told: You qualify for XXX amount of money. First I was glad and surprised until I asked a simple question: Do I have to pay this back? The answer was abruptly thrown back into my face: OF COURSE! No thank you sez I

Mar 20, 2019 07:59 AM #19
Rainmaker
787,879
Kevin Mackessy
Blue Olive Properties, LLC - Highlands Ranch, CO
Dedicated. Qualified. Local.

There are many ways to attack student loans, and making payments should be one of the first things people try.  But they should also at least check with a lender if they are able to purchase in spite of that fact. 

Mar 20, 2019 12:48 PM #20
Rainmaker
3,797,878
Dorie Dillard CRS GRI ABR
Coldwell Banker United Realtors® ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

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

Congratulations on a well deserved featured post! Excellent advice..always talk to a professional to get the most up to-date information. So many false rumors running around out there. Your advice is positive and helpful to understand the home buying process when you have student loans.

Mar 20, 2019 01:05 PM #21
Rainmaker
5,347,038
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

This is great information to share with prospective home buyers.

Many feel the burden of student loans.

Mar 20, 2019 02:36 PM #22
Rainmaker
420,686
Michelle Francis
Tim Francis Realty LLC - Atlanta, GA
Realtor, Buckhead Atlanta Homes for Sale & Lease

Gene, 

Love your approach.  While it can make it more challenging, you can still buy a home with student loans.  Way to peel back the onion on this one. 

Know your have your clients interest at heart.  

Recently have heard in the news about Purdue University trying to lower costs to college as it's already too expensive  

Being intelligent is critical - whether it's choosing the right college and level of debt for what you can do when you get out OR choosing the right mortgage person.  

Know you can handle the mortgage part, now how do we solve ridiculously high loans?

All the best, Michelle

Mar 21, 2019 03:34 PM #23
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Jeff Dowler, CRS
Solutions Real Estate - Carlsbad, CA
The Southern California Relocation Dude

Hi Gene:

We can always count on you to share information that is important, and useful, for buyers. My daughter was able to get a great loan a couple of years ago when she and her husband bought their first place in LA in spite of her student loan. She had a great lender, too!

Jeff

Mar 21, 2019 06:55 PM #24
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