If you went to college and you took out a student loan to help you cover your educational expenses, then you probably have a student loan that you are working to pay off. Now if you are like many people with a student loan, that debt has probably presented an obstacle to your home purchasing journey.
Well now, as part of its efforts to expand access to affordable mortgages, the Federal Housing Administration announced it has eased requirements for home buyers with student debt.
The National association of Realtors or NAR as it is commonly referred. NAR joined a group of 20 organizations in calling on the Department of Housing and Urban Development, and the FHA to enact changes to its underwriting policies regarding the calculation of a borrower’s student loan debt.
A large percentage of FHA buyers are first-time home buyers. Many of these buyers have student loan debt. This new policy will remove a roadblock which has prevented many potential first time home buyer’s from qualifying for a mortgage.
Many believe homeownership is the cornerstone of the American dream and the best way to build wealth. This roadblock to homeownership for aspiring buyers cuts across all demographic groups. It hits minority home buyers especially hard since many minority students are more than twice as likely to have student loan debt and be rejected for mortgage loans.
This step by HUD and FHA will go a long way in allowing potential first time home buyers an open road to homeownership. Look out sellers here they come!
By R. Jones
