Question: Hi all…I am thinking of buying a home for the first time and I had some > questions I hope you all could answer. I currently have been employed for > two years (my first job since graduating college) and make 30,000/annual. I > don’t have any credit cards because I have paid them off on time pretty > well. My credit rating is 720. However, I have a large student loan debt > that totals 90,000. I pay 540.00 a month and will for the next 30 years. I > currently lived with my parents and they help me pay my student loan paymens > by paying half. My question is…by having such a large debt due to my > student loans, do you all think I could still qualify to buy a house. I > have not yet contacted a real estate agent because I wanted to do some > online research before I do and I’m not sure if this is an appropriate > newsgroup but I’d thought I try anyway…
> Thank for the help….robey from texas
Answer: The question is not if you can qualify for a loan, but if you would be able to afford the house payments in addition to your other bills. If you can find a house which you can afford, then you would probably qualify. The lenders told me I could purchase a home with payments about $500 higher a month than the home I purchased. (I did not feel I could afford a home in that price range, as I wouldn’t have much spending money left for repairs and such.)
Also will your parents always pay half of your student loan? Do they have the financial ability to continue these payments for the life of your home loan or until your income increases enough for you to take over their portion of the student loan payments? Lenders would want to know what would happen if your parents stopped paying half the student loan for some reason.
You can document your parents payments with several years of bank statements, canceled checks, etc. BTW. Also you can get a letter from your parents saying they will continue to pay half and that they have the resources to do so. Also in the event of their death, you would receive enough money to continue the payments, etc.
So go ahead and look at some home prices. Don’t sign *anything* until you find a home you want to buy. If they say you need to sign something before they can show you homes, go elsewhere.
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