What if I have student loans?


I’m glad you could join me today

Welcome to Your Real Estate Academy.com

Where you will discover everything you ever wanted to know about real estate but were afraid to ask. Here is the place to ask questions and learn everything you need to become an educated real estate investor because owning your own home is an investment in your family wealth.

My name is Debbie McGrann. I am a real estate agent in Maryland and team leader of the Reap Advantage Team serving all 50 states. I created Your Real Estate Academy in order for potential home buyers to have a convenient central location with all the information available to you on your schedule.

My purpose is to teach you the home buying process step by step so you will start your home search with knowledge and confidence. I will have information available for you to download and review.

I have prepared a series of online lessons about the home buying process. 

Today’s question is:

What if I have student loans? How does that impact my ability to buy a home?

This is one of the fears first time home buyers have along with 

  • What if I have a low credit score?
  • What if I have a bankruptcy or foreclosure?
  • What if I need money for a down payment requirements?

All these fears can be overcome with facts and I will discuss each of them in separate videos -look for them on the website

First thing I want to tell you is that there are millions of people with student debt.  You are not alone. That is why the government has created many special loan programs for borrowers with student debt.

The amount of your student loan payments are considered as part of your debt- to – income ratio when your loan officer is working to qualify you to buy a home. In most cases, you will be able to buy a home but the amount of student loan debt combined with your other debt such as car loans will determine how much you can borrow.

  • The Debt-to-Income Ratio = In most instances, your combined debt (credit cards, student loans, alimony, child support, car loans and housing expenses) should be less than 45% of your monthly gross income.

I advise all my potential home buyers to keep their car payments as low as possible.  Wait until after you buy your house to buy a new car.  Don’t be tempted by the low interest rates and a shiny new car because it will limit how much house you can afford. Home ownership builds wealth, new cars do not!

The government has designed many new loan programs that help buyers with student loan debt. In my state, Maryland, there is a program called Smart Buy that combines the buyer’s student loan debit with the mortgage payment to make one total monthly payment. These programs vary from state to state. Our lender partners will be able to advise you on the best program for your situation. I have included the guidelines for the Maryland program for you to download.

Thank you for joining me today. I hope you found this class helpful. If you have any questions or suggestions, please contact me, my team and I would be honored to help

My goal for this year is to help 100 families become homeowners and get them started on building their family wealth!  Are you ready to one of my buyers? 

Let’s get started today on your home ownership plan. Go on our website, Your Real Estate Academy. com and download all the free information I have for you. The videos are there for you to watch on your schedule. If you have any questions or suggestions, please submit them to me so I can help you. 

If you are ready to start your home search, please call me for a buyer’s consultation and let’s get you started building wealth for your family through home ownership!  I look forward to hearing from you soon.