{"id":5288,"date":"2017-01-21T15:42:42","date_gmt":"2017-01-21T15:42:42","guid":{"rendered":"http:\/\/teammovemortgage.com\/?p=5288"},"modified":"2020-07-13T22:32:47","modified_gmt":"2020-07-13T22:32:47","slug":"home-purchase-student-loans-ibr","status":"publish","type":"post","link":"https:\/\/teammovemortgage.com\/blog\/home-purchase-student-loans-ibr\/","title":{"rendered":"How to Buy a House With Student Loans in Income Based Repayment"},"content":{"rendered":"

It is no secret that student loans cause debt ratio issues\u00a0when\u00a0qualifying for a home loan.\u00a0 While mortgage lending hasn’t caught up with student loan debt payment options, there are great solutions available.\u00a0 So let’s share creative ways millennials and first time buyers with even\u00a0large student\u00a0debt could buy a home.\u00a0 Plus buy a home with great terms!<\/p>\n

Per a recent\u00a0Federal Reserve report **, student loan debt is rising at\u00a0an alarming\u00a0rate of $2,701 per second!\u00a0 As of January 2017, student loan debt is approximately $1.4 trillion!\u00a0 Obviously this is a problem.\u00a0 We don’t have a solution for this stat, but we do have a great option for many that desire to be a homeowner.<\/p>\n

One of the most popular student loan companies is Navient<\/a><\/span>.\u00a0 Navient offers a lot of affordable resources for student loan debt.<\/p>\n

So while you are search Zillow<\/span><\/a> or Realtor.com<\/span><\/a> for the perfect home, check with us early for qualification.<\/p>\n

How to Buy a Home with Student Loans<\/h2>\n

As mentioned, we have a great solution but there are rules of course.\u00a0\u00a0Often mortgage loans will not count the low to no payment for student loans\u00a0with Income Based Repayment (IBR).\u00a0 The norm is to count either 1% of the outstanding balance or use the fully amortized payment.\u00a0 This guideline disqualifies many buyers\u00a0with debt because it creates a high<\/p>\n

\"How
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debt to income ratio.\u00a0 For example, owing $75,000 would mean a $750 payment (using 1% of the balance).\u00a0 So even if the required student loan payment in this example is only $50, lenders often count $750.\u00a0 Obviously, it is hard for many buyers to qualify with this level of\u00a0payment among other debts.<\/p>\n

But there is a way to use IBR or reduced payments with a great purchase program.\u00a0 By the way, it works for refinancing too!\u00a0 As long as the student loans are\u00a0NOT<\/strong> in deferment, forbearance, or have a zero payment, this program could work for you.\u00a0 This is a conventional loan offered through Freddie Mac which we offer to our buyers.\u00a0 Check out the advantages!<\/p>\n

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\nAvailable for college students in and around Volusia County, FL
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Benefits of Purchase Program with Student Loans<\/h2>\n