Did you know you can buy your dream home while paying off student loan debt? It’s true and even quite common. While student loans are factored into your debt-to-income ratio, they shouldn’t prevent you from becoming a homeowner. And fortunately, there are many programs and options available to prospective buyers, some you may not be familiar with. Here are four ways people with student loans achieve their homeownership goals:
1. Co-buying With Friends or Family
Purchasing a home with a roommate, significant other or sibling allows you to combine multiple incomes to qualify for a better mortgage rate. This can help lower your monthly payment and make home maintenance more affordable.
2. Receiving Financial Gifts From Family
Did you know that you can also accept gift money from your parents, grandparents or other family members to put toward your home purchase? Some loan programs have a cap on how much gift money can be used, so make sure you know the limits first.
3. Choosing Low (or No) Down Payment Loans
There are many low down payment options, including FHA, HomeReady and other loans. VA loans may be available to veterans and military members as well as USDA loans for those purchasing in rural areas.
4. Using Assistance Programs
Down payment assistance programs can cover some or all of your down payment costs if you qualify. These programs vary by location so give us a call to put you in touch with a lender who can help you to learn about potential options.
Working on your credit can also help you buy a home. Pay your credit card bills on time every month, try to pay down your debts and never let an account go into collections. Every monthly bill you can eliminate will raise the value of a new home that you can afford. It also helps to get preapproved for a mortgage so you know how much you qualify for.
If you’re ready to make homeownership a reality or would like a referral to a trusted lender, get in touch today- we are only a phone call away. (509) 919-9099