Student Loans Are Back in the News. Don't Let It Put Your Homeownership Plans on Hold.

Written By Tammy DeWolfe
Pink piggy bank next to a white model house, house keys, coins, and a calculator on a white desk.

Student loans are back in the spotlight. And whether you've been following the headlines closely or just catching bits and pieces here and there, there's a good chance they've been on your mind lately.

And if you’re questioning whether you have to hit pause on your plans to buy a home, here's the thing you have to remember:

Having student loans doesn't automatically mean buying a home has to wait.

The Biggest Myth About Student Loans and Buying a Home

One of the most common misconceptions among first-time buyers is that they have to pay off their student loans before they can qualify for a mortgage. But in most cases, that's just not true. 

As an article from Redfin explains, student loans usually get evaluated the same way other debts do, like credit cards or car payments:

“Yes, you can get a mortgage with student loan debt. Lenders primarily assess your debt-to-income (DTI) ratio, which compares your monthly debt payments, including student loans, to your gross monthly income. Having student debt doesn’t automatically disqualify you if your DTI is within acceptable limits.”

So having that loan on your credit report isn't some special red flag that immediately disqualifies you.

Instead, lenders look at your overall financial situation, including your income, credit history, and more. Student loans are one piece of that puzzle, but they’re not the entire picture.

You're in Better Company Than You Think

Bar chart showing NAR data on home buyers with student loan debt: 16% of all buyers, 33% of first-time buyers, 11% of repeat buyers.

Just to really drive this home, here’s a stat from the National Association of Realtors (NAR) that proves you can have student debt and still buy a home. Their researchshows 33% of first-time homebuyers still had student loan debt.

That's 1 out of every 3 first-time buyers. The median amount they owed? $30,400.

Let that reassure you that people are buying homes with student debt every day. And carrying student loans doesn't automatically put homeownership out of reach.

Don’t Count Yourself Out Before You Even Try

At the end of the day, here's where a lot of buyers trip themselves up. They assume the worst and never even check what they could actually qualify for. But your situation is more unique than a blanket "no."

If your income is steady and the rest of your finances are in decent shape, buying a home could be more realistic than you think. The only way to know for sure is to actually run the numbers with someone who does this for a living.

You may discover you're closer to buying than you think.

Bottom Line

Student loans don't have to be the thing standing between you and owning a home. If you've been putting off your homebuying plans because of that debt, talk to a lender about your options. It may not be the barrier you think it is.

Tammy DeWolfe

Tammy DeWolfe, a dedicated and accomplished real estate professional, has been making her mark in the Massachusetts area for over a decade. With roots in Perry, Iowa, Tammy's journey began in retail management, where she honed her skills in customer service and leadership working for renowned companies such as Timberland and J-Crew. Her extensive travels across the East eventually led her to Massachusetts, setting the stage for her illustrious career in real estate.

Tammy's real estate journey commenced under the mentorship of her father-in-law, Dick DeWolfe, at The DeWolfe Company - once the largest residential real estate firm in New England. Even after the company's transition to Coldwell Banker, Tammy's dedication to excellence remained unwavering. Throughout her tenure with both firms, she amassed an impressive sales record, earning numerous Top Producer Club certificates and other prestigious accolades.

Now with Sotheby’s for over ten years, Tammy continues to distinguish herself through continuous professional development, ensuring she remains at the forefront of industry trends and practices. Her certifications as an Inventory Specialist, Referral Specialist, Affinity Specialist, and Certified Negotiation Specialist testify to her commitment to providing unparalleled service to her clients.

Tammy's involvement extends beyond the realm of real estate; she is deeply committed to her community and professional organizations. She serves on the Community Service Board and is an active member of the National Association of Realtors and the Women’s Council for Realtors, where she holds the position of secretary. Her philanthropic efforts include contributions to Habitat for Humanity, the National MS Society, and Big Brother Big Sister, underscoring her dedication to making a difference in the lives of others.

Above all, Tammy is a devoted mother and wife, embodying the values of honesty, integrity, and fairness in both her personal and professional life. Her engaging personality, professionalism, and consistent results have solidified her reputation as one of the top real estate agents in the market. Whether you are buying or selling, Tammy DeWolfe's expertise and commitment to excellence ensure a smooth and successful real estate experience.

https://www.thedewolfegroup.com
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