USDA Loans and Student Loan Debt
Student loan debt is a reality for many first-time homebuyers.
In fact, 83 percent of non-homeowners claimed that student loan debt was the reason they didn’t own a home.
The reason being that student debts will count against the debt-to-income ratio and they believe they won’t be approved for a home loan.
You Can Still Get a Mortgage with USDA Loans
The truth is that homeownership and student debt aren’t mutually exclusive.
You can have student debt and still be approved for a mortgage; you are just unaware of your options available and are filled with misconceptions surrounding buying a home. Make sure you also take a look at our homeowners guide after this post.
One of the biggest misconceptions first-time homebuyers (other than the stress of buying a home) have is that you need a down payment but that isn’t necessary at all for a USDA Home Loan.
Briefly on USDA Loans Requirements
A USDA Loan requires No down payment and its PMI (premium mortgage insurance) is far less than an FHA loan.
The other misconception is that you have a bad credit score because you have student loan debt.
As long as you have been making your payments on time then your credit score will be good.
Even then the USDA Loan only requires a credit score of 640 to qualify for.
With these misconceptions cleared up you now know you can qualify for a home loan, but here is the reason why you should buy a home.
Benefits of Homeownership and USDA Loans
You may think that you are not ready for the commitment of owning a home. but allow us to give you a few reasons why you should buy instead of rent.
Stop throwing away your money.
Instead of paying someone else wouldn’t it be better if you were instead using that money to invest in yourself.
Well, that exactly what you would be doing if you bought a home.
Every time you make a payment you are building equity in your house instead of paying a landlord.
This equity can also help you with your student loans.
By owning a home you will also get tax benefits every year.
Allowing you to deduct mortgage interest and property taxes, this will help you out by giving you more money every year from your tax returns.
Talk to a USDA Loans Specialist
If you have any questions about buying a home or planning for your financial future please consider speaking to a loan specialist.
We are here to help guide you in making the best decision for you. You can contact us by filling out the form or you can call us at (888-GO-4-USDA).
So, unless you can get away with staying at your parents’ house for an extended period of time, consider buying a home instead of renting.