Will $54,000 in school loans keep me from getting approved for a mortgage?
I am 23, my boyfriend is 24 and we're looking to buy our first home. My fico is 640, I'm not sure about his at the moment. I'm worried about my $54,000 in school loans, which are private, not federal, so I cannot apply for forbearance or deferment. Townhomes that we are interested in in our area run between $160,000-$200,000. Will mortgage lenders consider lending to someone in my situation? by sdorval from Dracut, Massachusetts. Jun 29th 2011
Gianni Cerretani (mortgagegodfather)
#32 ranked lender in Georgia - 238 contributions
Congratulations on making the decision to go after the american dream. It is tough to give you a yes or now answer right now as many factors will come in to play. Have you been on time with your school loan payments, what will be the monthly minimum payment on the student loans, what is your debt to income ratio, what is your middle credit score not just a score from one credit agency. My suggestion is if you are serious about buying a home you should sit down with a trusted local loan officer and allow them to take a full loan application and look at all your income documents. That way you are not guessing! Good luck!
Steve Sexton (steve@1800valoans.com)
#36 ranked lender in Washington - 23 contributions
Your payment on the student loan will be calculated into your debt to income ratio as any other installment or revolving debt. What you will qualify for will be based upon your income and loan type. Good luck, and it is great your a looking to purchase at this stage in your life.
Adrian Brown (AdrianBrown)
#5 ranked lender in Virginia - 12 contributions
The bank will consider giving you a loan, if you qualify. There are so many factors that goes into getting approved for a loan. (job stability, downpayment, credit scores, total debt, etc.) You need to get pre-approved first, to make sure you qualify for a Townhome in that price range.
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