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Not sure if you can buy a house with student loan debt? Well don’t count yourself out from buying a home just because you have student loans.
Qualifying for a home loan is based on several factors; one of which is your Debt to Income Ratio (DTI). This is is based on exactly what it sounds like – your income and your total amount of debt. Your DTI is determined by things like car loans, credit card debt, student loans, etc. As long as your DTI falls under the maximum level, you are likely good to go.
The following chart shows average DTI ratios based on loan type. For all loans, the average is 39% – which means that for all buyers who got a home loan, their total debt monthly payments were only 39% of their monthly income. For FHA, it’s even a bit higher at 41%.
So just because you have student loans doesn’t mean that you won’t qualify to buy a house. You just need to make sure the total amount of your monthly debt payments doesn’t exceed 41% of your monthly income.
Contact us today to discuss your ability to buy a house. Call or text 513-368-3751