Buying a home and getting a college degree used to be things that people aspired to do. However, many people are having trouble getting a home because of their student loan debt. Twenty-five percent of homebuyers have stated that they have struggled to buy a home because of their student loan debt. Forty percent of the people who had their home loan application rejected had student loan debt.
People will continue to struggle to buy a home because student loan debt is climbing. Jessica Lautz is the managing director of survey research and communication. She stated that student loan debt is not just a present problem. It is also a future one. Parents are taking out student loans so that their kids can go to college. Additionally, older adults are going back to school.
Coming up with a down payment is one of the many struggles that people face when trying to buy a home. Forty percent of homebuyers stated that they had to cut out non-essential things in order to buy a home. Jodi Meyers is a 44-year-old woman who had to make major sacrifices to buy a home.
Jodi was $55,000 in student loan debt. She and her husband saved all of their tax refunds. She also put her student loans in deferment for two months. Additionally, she got her lender to postpone her car payments until she closed on her home.
Jodi and her family made sure that they only spent money on the necessities. Their meals consisted of tuna and peanut butter and jelly sandwiches. They were eventually able to move into a four-bedroom home that cost $249,000. Jodi stated that it is not their dream home. However, they are happy to have this home.
Many people have to compromise by getting the home that they can get instead of the home they really want. Debt-to-income ratio is another factor that is making it difficult for people to get a student loan. If the debt-to-income ratio is too high, then it will be a lot harder for you to get a mortgage.
Cristina Colloci and her husband make a nice income. However, they had a harder time qualifying for a mortgage because of their debt-to-income ratio. Cristina became a licensed real estate agent to get the home that she and her husband wanted.