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*mortgage approval success stories with student debt*

 
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amother




OP
 

Post  Mon, Jun 15 2020, 6:00 pm
Hi, I’m looking for your home buying success story to help give me chizuk. My husband and I have excellent credit but substantial student debt. We are talking big student debt yet we are on income based repayment plans so our monthly bills are not too high. We are both professionals that received doctorates in our fields and never had family help. We both work full time and retained our jobs during Covid. We are hoping to buy a small, modest home.

Anyone have success getting preappeoved with good credit but high student debt. I’d rather not disclose the actual number for debt but looking for stories and any helpful advice.

TIA
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amother




Bisque
 

Post  Mon, Jun 15 2020, 6:07 pm
We have 6 figure student debt and have had no problem getting a mortgage (we've had 3 - bought one house, sold and bought another, and a refinance)
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amother




Violet
 

Post  Mon, Jun 15 2020, 6:13 pm
We had student debt in the 70K range and were approved for a huge mortgage based on our excellent credit and income. They care about the total debt to income ratio, not so much what kind of debt it is.
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amother




Orange
 

Post  Mon, Jun 15 2020, 6:17 pm
I am in the mortgage field. You should speak to a competent mortgage specialist to see what you can be approved for in your specific circumstances.
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amother




OP
 

Post  Mon, Jun 15 2020, 8:06 pm
Thanks everyone. OP here. The truth is our debt to income ratio is not good and have six figures worth of debt. However, we have excellent credit. We will speak to a broker, of course. I am so afraid of a mortgage broker laughing us out of town over our debt and just wanted to get a feel for success stories to help my morale.
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amother




Papaya
 

Post  Mon, Jun 15 2020, 8:36 pm
Never heard of student debt being an issue. Don't see why you would have a problem op.

FTR we bought our home with about 50k worth of debt and an income of about 40k while my husband was still in grad school. We had excellent credit and it was no prob.
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mra01385




 
 
 
 

Post  Mon, Jun 15 2020, 9:09 pm
To papaya how did you afford a mortgage with so little income, and how did you have money for a down payment?
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amother




White
 

Post  Tue, Jun 16 2020, 11:44 pm
mra01385 wrote:
To papaya how did you afford a mortgage with so little income, and how did you have money for a down payment?

Asking the same. We have about 70k income, but 50k debt... Want to buy a house, but don't know how can get approved!
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amother




Papaya
 

Post  Wed, Jun 17 2020, 11:55 pm
We bought a cheap home with FHA. Which means you only need to put 3.5 percent. Also another program that let us roll closing costs into the mortgadge. Basically put down only a few thousand dollars to buy the home. In our area rent is about the same or more than the cost of a mortgadge so even though we couldn't really afford a house we would somehow have to afford rent so we just pulled it together and made it work. Bh our income more than tripled over the next few years.
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amother




Black
 

Post  Thu, Jun 18 2020, 1:09 am
Mortgage professional here...the total amount of debt isn't considered when qualifying for a mortgage. Only minimum monthly payments are considered. Lenders don't look @ your net worth. Why don't you have a professional work your numbers and advise you. According to the current mortgage trends you should be able to use 50% of your gross monthly income towards monthly debt which includes housing and all monthly minimum payments. Keep in mind interest rates are also really low now.
I'm not sure if it's a possibility for you but there is an option of having a family member co sign for you if you need additional income.

Lastly it's always smart to prepare in advance and do speak to a mortgage professional about your options - don't feel intimidated!
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