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Millennials make up the largest share of homebuyers at 32% according to the National Association of REALTORS®. That statistic alone proves that millennials are not the “renter generation” that they have been made out to be. Millennials are looking at home buying as more of an investment, and not somewhere they will live forever. But is that so much a bad thing? They are fixing homes up, improving the quality, making the homes customized to them. They are also applying those do-it-yourself projects making the renovations more affordable. This generation of home buyers are certainly different than say those buying even 10 years ago. It could be seen as less romantic, but more strategic. They are buying un-married, owing for shorter times, and flipping homes with more success. Millennials are buying closer to work, living in walkable neighborhoods, and closer to the city.
Without downplaying Millennials and student loan debt, research has shown that Millennials are not using this as a factor into not purchasing a home. Student loan debt could hurt you or help you. Pay your student loan payment each month on time, and it helps your credit, let it fall by the wayside and you’re looking at a big decrease in your credit score. If you are a borrower with student loans you should not discount yourself from buying a home. You can qualify for a home if your debt-to-income ratio is 45% or less. For example, if you make $35,000 a year before taxes, then you could not have more than $1,312.50 in debt each month to qualify for a loan.
Give us a call if you have any questions about qualifying for a loan at 866-456-5511. We’d be happy to discuss your options and get you into the best home for you!
Mortgage Options, Inc. is a licensed mortgage broker NMLS 803458 SC DCA and NMLS 1183586 NC Commissioner of Banks