A lot of young Americans went to college, studied hard but in addition to getting a diploma, they also graduated with debt. Having loans is not a deal breaker but it will factor into the important debt-to-income (or DTI) ratio, and mortgage underwriters are primarily looking at the numbers so having it be student loan debt isn’t different from a car loan in the math.
Strategies to get approved with student loan debt
Pay it down – this maybe easier said than done but if you have extra money or got a raise then try to pay down the debt
Consolidate it – if you can consolidate your debt and lower your monthly payment (even not the overall loan amount) this will help your monthly DTI ratio
Co-sign – this can be a delicate process but its one to consider if you have a trustworthy, reliable family member or friend
Programs and Assistance
Sometimes a conventional mortgage might not be possible but there are options!
FHA, VA, and USDA loans offer a lot more flexibility and lower down payments than traditional mortgages
Grants and Programs – there are a number of grants and programs out there from the federal to local level that you may qualify for
If you’re interested in qualifying for a loan but worried about your student debt give us a call or apply online and we can see what best fits your needs!