How to defer Student Loans When Buying A House
Buying a House with Student Loans (Even High Student Loan Debt)
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hi this is Shahid a hill the real real
tour getting you over the hill to home
ownership so I went into the archives my
college memory box for this video
because I said I was going to give you a
video all about student loans and how
student loans affect your ability to
qualify for a home and this is very
important because I had several people
call me try to get pre-qualified and
their student loan debt is at least
delaying them for now from getting
pre-qualified so I wanted to talk to you
in detail about how student loans are
calculated into your overall debt to
income ratio so please if you haven't
already please like and subscribe to my
channel for new videos every week so I
started out at least at a private
college and this is the first we want to
prop this sweatshirt out but because
it's the first time I ever took out a
student loan now
student loans were how I financed my
first year of education and I moved back
to Georgia after I went to the school in
Virginia and I was able to get a
scholarship at one of our state colleges
so I don't have that much student loan
debt but I still do have student loan
debt and when I was a teacher I was on
public loan forgiveness now that I'm
just doing real estate I don't qualify
anymore so I'm working on paying that
debt off with no assistance now my
husband however is also a teacher so
he's still on public loan forgiveness
and I'm telling you that to say I'm
keeping it real like I promise to do it
in every video I understand I understand
when people have to take out student
loans or felt that they have to take out
student loans to pay for their education
maybe they could have went to a state
school maybe they went to a private
school but what's done is done and so I
want to kind of tell you and guide you
after how you can still be a home owner
even if you have significant
loan debt so let's get started with how
with each loan type how the student your
student loan debt can effect your ratios
so I wrote it behind me so you can see
it hopefully you can see it okay but you
have our government back loans of course
so we have FHA if you haven't watched
any of my videos please watch my videos
on the loan type so you'll have an idea
of what they are and I also have a video
about how to calculate your debt to
income ratio so if you haven't already
please go back and watch those videos
and I'll link below
but our FHA loan and our USDA loan are
both government backed loans now if you
have student loan debt they are going to
calculate the higher of the two either
one percent of your company
student loan balance or your your
payment which ever one is higher
whichever one is higher so if you're on
like an income-based plan and maybe
you're paying $200 but your overall
student loan debt might be a hundred
thousand dollars they're going to take
one percent of that hundred thousand
dollars and add that to your debt to
income ratio and a lot of times I have
one person that called me whose student
loan debt was over a hundred thousand
and another person that called me whose
student loan debt was over two hundred
thousand and they were not doctors that
weren't like making significant amounts
of money so um it really brought their
debt to income ratio so high that they
couldn't get qualified or at least they
couldn't get qualified yet I'm going to
give you some solutions if you're having
difficulty getting pre-qualified so just
know that FHA and and USDA calculate one
percent of your student loan balance or
your payment which everyone is higher
and usually that one percent is going to
be higher secondly is your B
so those are your again it's government
back but they're for veterans or the
spouse of a veteran that is served so if
you're able to get a VA loan the benefit
of this one over the other two
they also calculate 1% but if your
student loans are on deferment for 12
months or more then they will not
calculate that student loan payment into
your debt to income ratio so if you're
able to defer your loans more than 12
months and you're eligible for VA loan
because it want to help our veterans as
much as possible or people currently
serving in the military they allow them
to not count their student loan debt if
their student loans are deferred 12
months or more so those are FHA USDA and
ba options now okay so if you have
significant loans student loan debt or
if you have any kind of debt that's
hurting your debt-to-income ratio and
stopping you from getting pre-qualified
because a lot especially if you want to
do downpayment assistance a lot of the
state down payment assistance programs
our FHA products so it's hard for you to
get pre-qualified because you're over
their debt to income limits so here are
the options that I want you to consider
you may have to consider a conventional
loan a conventional loan a conventional
loan doesn't do 1% they do your actual
monthly payment so again they do your
actual monthly payment so if you're on
something like income based repayment
because maybe you're on public loan
forgiveness or you're on any kind of
reduced payment plan they will take your
actual monthly payment as long as you're
not in like deferment or forbearance
you're not paying anything so if you are
on like forbearance or they're from it
you're not paying anything then they're
gonna go back to that percentage so it's
best for you if you want to qualify for
a conventional loan and for them not to
take that percentage for you to get on
some sort of income based repayment plan
even if it's 10 dollars or even if it's
you know a minimal amount they will
calculate that it's your debt
income ratio with convince a
conventional loan product now with
conventional loans sometimes they
require a higher credit score than FHA
or USDA they may also require a down
payment especially if you can not
qualify for the down payment assistance
programs that might be available to you
so then you have to say okay do I have
the down payment money do I can I get my
credit score up if my credit score is
not high enough but your best bet when
you have large student loan debt is to
get on into an income based repayment
plan that will bring your debt-to-income
ratio hopefully within the limits of the
conventional loan and you'll be but you
may have to either do a down payment or
make sure your credit score is high
enough to qualify for a conventional
loan so that's your your best bet when
you have high student loan debt I'm
going to give you some other options as
well so you're on your income based
repayment plan you're able to qualify
with the debt to income ratio you have
the down payment if you do not have a
down payment I have like a video about
how to save for a down payment back
there's some options for you as to how
you can start saving for that down
payment if that's what you're going to
have to do because of your student loan
debt student loan debt also again how to
get your credit score up is not the best
video I'm going to make another video
about how to get your credit score up
but this will get you started for sure
if you're trying to get your credit
score where it needs to be to qualify
for a conventional loan product then
you'll want to watch that video now and
some other options if you're married or
if you have somebody else is going to do
the student the mortgage with you
perhaps one person who maybe doesn't
have student loan debt or has very low
debt can qualify for the mortgage on
their own so that's one option
the downside of that is they can't use
both incomes so they're only use one
income one person will qualify and so
you probably can't get maybe as large of
a housing as you want
but if you're a first-time homebuyer is
a place to start you can save your money
maybe pay off some of your student loans
pay off some of your debt and then you
can upgrade to a larger home in the
future that's an option if you're trying
to get this is another option I think I
moved out of my mom's house really too
quickly so I'm gonna put this option out
there as soon as I graduated from
college I was out and I could have spent
more time at least a year at home saving
up paying off things if that's an option
for you I think don't be embarrassed
a lot of people are doing it I would
move back in with family long enough to
pay off some debt or long enough to save
a down payment so you can qualify for
the conventional loan product I made a
lot a lot of my last closing was an
intergenerational family that moved in
together - you know they save money
grandparents can help with the kids if
that's an option for you if you can move
in with family for a year to save some
money either for a down payment or to
pay off some of your debt that is an
option for you
another thing is car payments a lot of
people have high student loan payment
and they also have a big car payment so
if you haven't bought a car yet and you
are considering it but you really want a
house I would not buy a car especially a
new car with a very big payment go ahead
and calculate your debt to income ratio
without the car see what kind of car
payment if you can pay cash that's great
because it's not gonna be into your debt
but if you feel like you have to get a
car payment make sure it's the lowest
payment possible that's a depreciating
asset your car is not gonna be worth
more money in the future getting
something like a house will appreciate
over time it's a better investment cars
are not an investment so if you're
trying to figure out you're in the
market for a car buy the least expensive
car possible because you don't want to
add on to your student loan debt by
buying a vehicle and then lastly maybe
you cannot get the the price home that
you wanted to get to stay into the
guidelines the mortgage guidelines and
to to qualify so really
sitter and maybe not buying you know
such a big house maybe buying a smaller
house there's such cute day that I was
watching HGTV yesterday and it was a
1400 square foot house and they made it
fabulous they made it beautiful so it's
really not the size of your home it's
really what you put into it which you
can do with it and then you can build on
that home as an investment for your
future so I wanted to let you know how
student loans can affect you getting
qualified for a loan please like and
like this video please ask me any
questions if you have specific questions
about your student loan your student
loan situation please put it in the
comments and I'll be sure to answer them
please like and subscribe to my channel
for new videos like this every week and
best of luck with you with qualifying
for your for your mortgage thank you so
much for watching bye bye
