The student debt load in the U.S. now stands at $1.3 trillion, representing 10% of all outstanding debt. Nearly three out of four students graduating from four-year colleges had student loan debt in 2012.

According to NAR’s Student Loan Debt and Housing Report, 71% of student loan borrowers current in their repayment say student debt has delayed them from buying a home. But what proportion of those who cited student loans as an obstacle to their homeownership dreams could have benefited from more information about the mortgage process and someone to answer financial questions?

For those of you with student loan debt, there are a few things to keep in mind:

Your repayment plan. Lenders will want to see that you are paying on the loans and, if possible, an income-based repayment plan.

Your debt-to-income ratio. It’s not just student debt that will affect your ability to borrow for a home. Your overall monthly debt-to-income ratio must be below 43% to qualify for most mortgages.

Factor in how much you can save for a downpayment. Committing to a larger downpayment will make you more attractive to lenders, but if you can’t afford that, it’s worth investigating whether your individual situation would be a good fit for an FHA loan.

We can help point you in the right direction to see if you can qualify for a mortgage loan. Call or text me today to get more information. 903-654-0007

-Lindsay