Can we get Mortgage with 6 figure student loans?

Anonymous · ‎05-30-2018

Can We Get Approved For A Mortgage With $130k In Student Loan Debt? We have a household income of 32K. Fico scores in upper 600's to lower 700's. Student payments are on IBR and PSLF.

MrsAngelo · ‎06-01-2018

I had about 100k in student loans when my husband and I bought our home. Credit scores 715-730. Income was about $110k combined. They asked for me to get my loan deferred for 1 year. Our home was also about $300k. We are in NY. They have lots of first time home buyer programs that appeal to lenders and you may be able to get a grant. YMMV as it depends on the home you’re buying, cost, income, and credit profile. Our lender relied on my scores bc my income was higher. My scores were lower than my husbands, his were close to 800. When you prequal a good bank will tell you what you can afford and everything you should do. Good luck. I am sure you will get your house or if not it may take a little longer than you want. Hope this helps!

Anonymous · ‎06-01-2018

@MrsAngelo wrote:
I had about 100k in student loans when my husband and I bought our home. Credit scores 715-730. Income was about $110k combined. They asked for me to get my loan deferred for 1 year. Our home was also about $300k. We are in NY. They have lots of first time home buyer programs that appeal to lenders and you may be able to get a grant. YMMV as it depends on the home you’re buying, cost, income, and credit profile. Our lender relied on my scores bc my income was higher. My scores were lower than my husbands, his were close to 800. When you prequal a good bank will tell you what you can afford and everything you should do. Good luck. I am sure you will get your house or if not it may take a little longer than you want. Hope this helps!

Thanks for sharing your story. I was worried a little because I recently immigrated to US and I don't have a job yet, however, we have managed to save some money to cover closing costs for homes budgeted around 160K. So I was just curious if we could be approved or even pre-qualify for that matter with such huge debt.

Anonymous · ‎06-01-2018

@Anonymous wrote:
Can We Get Approved For A Mortgage With $130k In Student Loan Debt? We have a household income of 32K. Fico scores in upper 600's to lower 700's. Student payments are on IBR and PSLF.

im no expert, but your debt to income is pretty high.

you might want to give it some time until income is higher and some more debts are paid before thinking of taking on more debt. Again this is just my opinion and what i would do if i was in your shoes.

Anonymous · ‎06-01-2018

@Anonymous wrote:

@Anonymous wrote:
Can We Get Approved For A Mortgage With $130k In Student Loan Debt? We have a household income of 32K. Fico scores in upper 600's to lower 700's. Student payments are on IBR and PSLF.

im no expert, but your debt to income is pretty high.
you might want to give it some time until income is higher and some more debts are paid before thinking of taking on more debt. Again this is just my opinion and what i would do if i was in your shoes.

@ @Anonymous, thanks for your input. I am aware that current DTI is high. but rising home prices and interest rates were what bothered me and making me think!

Anonymous · ‎06-01-2018

@agentsam PS instead of paying rents we might as well focus putting it towards equity in general which I believe is better off. But I am not sure If I will find lenders for my scenario.

MrsAngelo · ‎06-02-2018

The most important thing to lenders for a mortgage in the secondary market. They want to be sure they can sell your loan. Each lender is different with their underwriting standards. The more you can do to show you have stability and finances the better. Debt-to-income is huge for mortgages. You can do it. It is possible. Best of luck in finding your dream home.