January 24, 2022

College

Its all about the school

Buying A House With (High) Student Loans – First Time Home Buyer

12 min read

Think you can’t buy a house because of your student loan debt? Think again. Yes, having high student loan debt can make it difficult to buy a home. But it doesn’t make it impossible.

As senior mortgage broker Dennis Tate explains, the biggest obstacle to buying a home when you have student loans is raising your credit score.
Ideally, you’d want to have a credit score of 700+.

With a score that high, you’ll give yourself the most options to qualify for a Fannie Mae or Freddie Mac backed loan.

The lower your credit score, the fewer your options. If your score is in the 600s, you’re likely looking to qualify for a FHA mortgage.

An FHA mortgage can spell trouble for you if you have a high student loan debt. The FHA rules use 1% of your student loan debt to calculate your debt-to-income ratio.

Depending on your balance, 1% can destroy your DTI and make it near impossible to qualify for a mortgage.

Topics Covered:

05:13 Getting a mortgage with over $100 thousand in student loan debt
10:15 A 740+ credit score gives you the most options
12:40 When to pick Fannie Mae over FHA mortgage
10:08 How to stop harassing phone calls from student loan creditors?
15:50 Calculating debt-to-income ratio (DTI) with student loan payments
17:57 Try to wait 4 years after filing bankruptcy to apply for a mortgage
20:08 The best way to track your credit score
24:10 How does a student loan settlement affects getting a mortgage
18:03 How much will my credit score improve after I settle a student loan?
31:10 How overlays affect getting a mortgage
33:08 Defaulted private student loans may not appear on your credit report
35:12 Recapping 4 things needed to get a mortgage with high student loan debt
43:00 People Dennis can help
43:08 A high student loan balance, by itself, does not hurt your score

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👉 Want my help? Schedule a free 10-minute phone call at: https://www.tateesq.com/free-talk

👉 Contact Dennis Tate at: https://www.flatbranchhomeloans.com/team/dennis-tate

Source: #1 Student Loan Lawyer | Tate Law

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