Student Loans Don't Have to Put Your Homeownership Plans on Hold

Student loans are back in the headlines, and if you've been carrying that debt and wondering whether buying a home is even a realistic option right now, this is worth reading.

The most common misconception among first-time buyers is that student loans have to be paid off before they can qualify for a mortgage. In most cases, that simply is not true.

Lenders evaluate student loans the same way they evaluate any other debt — car payments, credit cards, or otherwise. What they are primarily looking at is your debt-to-income ratio, which compares your total monthly debt payments to your gross monthly income. Student loans are one piece of that picture, but they are not an automatic disqualifier. Your income, credit history, and overall financial profile all factor in.

One in three first-time buyers carries student debt.

According to the National Association of Realtors, 33 percent of first-time homebuyers still had student loan debt when they purchased their home. The median balance they were carrying was $30,400. That is one out of every three buyers — which means this is far from the rare exception people assume it to be.

Don't count yourself out before you check.

A lot of buyers in the Fort Worth and DFW area put their plans on hold because they assume the answer is no — without ever actually running the numbers. If your income is steady and the rest of your finances are in reasonable shape, you may be closer to qualifying than you think. The only way to know is to talk to a lender and find out where you actually stand.

If you have student loans and you've been wondering whether homeownership is still on the table, reach out to the team at Mills Real Estate Group. We can connect you with trusted lending professionals in the Fort Worth area who can evaluate your specific situation and help you understand your options.