Can you buy a Boston condo with student loans?
Boston Condos for Sale and Apartments for Rent
If you have student loans and want to buy a home, you might have questions about how your debt affects your plans. Do you have to wait until you’ve paid off those loans before you can buy your first home? Or is it possible you could still qualify for a home loan even with that debt? Here’s a look at the latest information so you have the answers you need.
A Bankrate article explains:
“Roughly 60 percent of U.S. adults who have held student loan debt have put off making important financial decisions due to that debt . . . For Gen Z and millennial borrowers alone, that number rises to 70 percent.”
This includes one of the biggest financial decisions you’ll ever make, buying a back Bay condo for sale. But you should know, even with student loans, waiting to buy a home may not be necessary. While everyone’s situation is unique, your goal may be more within your reach than you realize. Here’s why.
Can You Qualify for a Home Loan if You Have Student Loans?
According to an annual report from the National Association of Realtors (NAR), 38% of first-time buyers had student loan debt and the typical amount was $30,000.
That means other people in a similar situation were able to qualify for and buy a condominium even though they also had student loans. And you may be able to do the same, especially if you have a steady source of income. As an article from Bankrate says:
“. . . you can have student loans and a mortgage at the same time. . . . If you have student loans and want a mortgage, there are multiple home loan programs you might qualify for . . .”
The key takeaway is, for many people, homeownership is achievable even with student loans.
You don’t have to figure this out on your own. The best way to make a decision about your goals and next steps is to talk to the professionals. A trusted lender can walk you through your options based on your situation, and share what’s worked for other buyers.
Boston Condos and the Bottom Line
Lots of other people with student loan debt are able to buy their own homes. Talk to a lender to go over your options and see how close you are to reaching your goal.
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Can you buy a Boston condo with student loans?
If you’re looking to buy a Boston condo for sale, you may be wondering how your student loan debt could impact those plans. Do you have to wait until you’ve paid off your student loans before you can buy your first Boston condo for sale? Or could you qualify for a home loan with that debt while you’re renting a Boston Beacon Hill apartment?
To give you the answers you’re searching for, let’s take a look at what recent data shows. That way, you know what to expect and what to do next to achieve your dream of becoming a homeowner. While everyone’s situation is unique, your goal may be more within your reach than you realize.
Do you have to delay your plans because of student loans & apartment rent?
If you’re worried your student loans mean you have to put your Boston condo goals on hold, you’re not alone. In fact, many first-time buyers believe they have to delay their plans. According to data from the National Association of Realtors (NAR):
“When asked specifically about purchasing a home, half of nonhomeowners say student loan debt is delaying them from purchasing a home (51%).”
When asked why their student loans are putting their plans on the back burner, three key themes emerged:
- 47% say their student loans make it harder to save for a down payment
- 45% say they think they can’t qualify for a home loan because of existing debt
- 43% say they believe the delay is necessary even though they’ve never applied for a mortgage
No matter which reason resonates most with you, you should know a delay may not be necessary. Here’s why.
Can you qualify for a home loan if you have student loans?
In the same NAR report, data shows many current homeowners have student loan debt themselves:
“Nearly one-quarter of all home buyers, and 37% of first-time buyers, had student debt, with a typical amount of $30,000.”
That means other people in a similar situation were able to qualify for and buy a home even though they also had student loan debt. You may be able to do the same, especially if you have a steady source of income. Apartment Therapy drives this point home:
“. . . buying a home with student loans is possible, experts say. The proof is in the numbers, too: Some 40 percent of first-time homebuyers have student loan debt, according to the NAR study.”
The key takeaway is, for many people, homeownership is achievable even with student loans.
The best way to make a decision about your goals and next steps is to talk to the professionals. A real estate advisor can walk you through your specific situation, your options, and what has worked for other buyers like you. They can also connect you with other professionals in the industry who can help. You don’t have to figure this out on your own – lean on the experts so you have the information you need to make an informed, confident decision.
Boston Condos for Sale and the Bottom Line
Many other buyers with student loan debt are already achieving their homeownership dreams. Maybe it’s time to take the next step toward making yours a reality. Let’s connect to discuss your options and find out how close you are to achieving your goal.
Can you buy a Boston condo with student loans?
As more millennials are preparing to buy a Boston condo for sale, one issue is — student loans. The Project on Student Debt calculated that just about 7 in 10 college graduates in the Class of 2015 had student loan debt. Additionally, the average student had about $29,000 in loans.
With mortgages often amounting to well over two hundred thousand dollars, many first-time Boston condo buyers may be asking whether they can even qualify for financing.
So, is it possible to buy a Charles River Park condo for sale even with thousands of dollars in student loans? It depends.
What’s Your Debt-to-Income Ratio?
It all comes down to your debt-to-income ratio, or what percentage of your gross monthly income goes toward your mortgage payments.
Lenders recommend a debt-to-income ratio no greater than 36%, with no more than 28% of your monthly income going toward paying off your mortgage. As an example, someone who earns $50,000 in a year and has $1,500 in monthly debt payments would be right at the 36% recommendation.
So even if you are saddled with thousands of dollars in student loans. It is possible to obtain financing for a home if your debt-to-income ratio is right around that recommended ratio.
You Also Need to Consider Credit History
When Charles River Park condo buyer applies for a mortgage, lenders look at whether they pay their bills on time and their employment history. For instance. If you have good credit history, that may further help you qualify for a mortgage.
You can always talk to a reputable lender about whether you can qualify for a mortgage with your student loan debt. Talk with us and we can help you get started with the mortgage pre-qualification process.
Conclusion
If you’re thinking of buying a Beacon Hill home or Boston downtown real estate in the area. We can recommend a reputable local mortgage lender so you can discuss the right mortgage for you, including interest rates and down payments. We even offer a free mortgage calculator on our website that can help you calculate monthly mortgage payments.
Contact us today and we can get started on your Boston condo for sale home search.
