First-time homebuyers with student debt may qualify for FHA loans now.
Today we’re talking about the Federal Housing Administration and some changes they’ve just made to help first-time homebuyers. About 40% of first-time homebuyers have student debt. Over the last five years, mortgage brokers and mortgage banks have had to factor student debt into their debt-to-income ratio calculation.
If you have $1,000 worth of student debt that you pay every month, then you’ll qualify for $1,000 less on your loan. This has a major effect on buyers being able to borrow for a mortgage or buy a home, so the Federal Housing Administration released a statement on June 18 saying that mortgage lenders can no longer factor in student debt to qualify for a mortgage.
This will open up a lot of opportunities for first-time homebuyers who are carrying student debt and who otherwise, in the past few years, would not have been able to buy a house.
If you have student debt and want to find out more about buying a house or see if you qualify now, give us a call at 704-626-2479 or visit us online at thewhitegroupblog.com.