Health & Fitness
“Student Loans Hurting Chances to Buy a Home”
High student loan payments may cause some buyers to miss the lower prices of this housing market.
One of the biggest reasons I can’t get a buyer approved for a mortgage, is their student loans. Many young professionals want to buy a home, before prices price them out of the market, but many have student loans that they are making payments on. Maybe it is just me, but I am seeing many situations like this.
In a recent situation, a young professional couple (attorney and nurse) burdened with $125,000 in loans and $1,000 per month. Neither can defer the payments any longer, so they are making the payments. They have consolidated a couple of times, but it is still $1,000 per month.
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The have 10% to put down, so we want to do a conventional loan. Their debt ratio is over 50%, which would preclude them from an approval. What we are contemplating is eliminating a car payment, which would require family help.
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Folks burdened by student loans will continue being an issue going forward.