Buying a house and consolidating debt Web find young
Concerns about student loan obligations are among the reasons why first-time home buyers account for a smaller percentage of the housing market as compared to recent years.
According to a study by American Student Assistance, 55% of student loan holders said their debt is causing them to put off homeownership.
For example, if you earned ,000 per month and had a monthly debt obligation of ,000, your debt-to-income ratio would be 40%. In general, your DTI must be 43% or less in order to get mortgage-approved.
You may find this figure to be too high for your tastes, and that's okay.
We also highlight your rights as a borrower, explain your bankruptcy options, as well as give you an honest assessment of payday loans.
However, there are ways to reduce what you owe to the government each month to help you qualify for "more home".
But, student loans don't have to be a barrier to entry.
You have means to reduce your monthly student loan payments, which can help you with your home loan approval.
And, despite the historically low levels of today's mortgage rates plus a wide array of low- and no-downpayment mortgages available to first-time buyers, student-loan-holding consumers are discouraged.
Many would-be buyers aren't even applying -- worried that their debts will make homeownership impossible.
There is no rule that says you have to use the entire forty-three percent of your household income on debts.