Don’t Let Student Loans Delay Your Homeownership Dreams

Don’t Let Student Loans Delay Your Homeownership Dreams

Published | Written by Allie Rupprecht

Do you have to wait until you’ve paid off your student loans before you can buy your first home? Or could you qualify for a home loan with that debt?

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?

If you’re worried your student loans mean you have to put your homeownership 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 find out if this is possible for your situation, is to call in a professional. As your real estate advisor, I work with professionals in the mortgage industry and am happy to refer you to someone who can walk you through the process of applying. They are then able to assess which loans are right for you, discuss with you the mortgage payment you are comfortable with, and, if needed, talk over ways to help improve your credit or debt to income ratio so that you can qualify in the near future.


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.

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