Can I Buy a House With Student Loan Debt?

Posted by Jace Stolfo on Thursday, February 27th, 2014 at 7:46am.

More First-Time Home Buyer Tips

Many people wonder if they can buy a home in Boise if they have student loan debt, and a couple of days ago, I wrote an article giving first-time home buyers some information about some possible steps to being a home if they have student loans.

The blog post dealt primarily with some alternative means to getting into your first new home. To get you up to speed, you could, like many families looking to buy one of the Boise homes for sale in the area, get a loan from your family. Formalized programs exist that protect the person loaning you the money for the home and allow you to avoid some of the debt-to-income issues that may arise from having too much student debt.

Will Debt Prevent You From Owning Boise Real Estate?

However, a new article on RedFin suggests to people that student loan payments may not be the behemoth people think they are when they're trying to buy their first homes.

What this boils down to for you is, rather than getting help with student loan debt by going to your relatives for a home loan, you can just go through the normal steps to buying a home. According to the article:

"Many young people with student loans delay buying a home because they don't think they can't qualify for a mortgage. Yet, many of them actually can qualify for a mortgage loan. Underwriters generally treat student debt in a more positive light than credit card or auto loan debt."
So what's the issue then? Sounds like you'll get that piece of Boise, Idaho real estate that you've had your eye on, right? Maybe. The more likely scenario is that you'll get into a home, but perhaps not the home that you originally had your eye on.

Some Additional Ways to Save for Your Boise, Idaho Home has some additional tips that may help you buy one of the Boise homes for sale that you have your eyes on.

  • The information site suggests that you consolidate your student loans if you can. This can lower your payments and help you get into home ownership more quickly.
  • Don't take on credit card debt. This just exacerbates the issue. If you already have credit cards and you want to purchase some Boise real estate, then have your cards consolidated and get a lower interest rate.
  • Prepare and live on a budget for a time before you decide to invest in home.
  • Look for ways you can cut down on your expenses and save found money. For example, you may have an easier time buying one of the Boise homes for sale if you get rid of your more expensive car and car payment. The money you save can go toward a downpayment on a home.

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