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Report: You can get a mortgage despite student loan debt

Numerous people in Washington, D.C., and across the country are saddled with enormous student loan debt. In many cases, these expenses cannot be expunged through typical debt relief options. At the same time, student loan debt can be cumbersome for people who are trying to qualify for a mortgage loan. A recent report offers some advice for those looking to buy a home while carrying this type of debt.

For example, one person noted that she really wanted to buy a home and decided that her current student loan debt would not be a deterrent. In order to best manage money, she chose to factor her budget into the equation. Instead of stretching funds too thin with a mortgage, she found a home she could afford.

Another person admitted that paying off a student loan that has a relatively low balance may not need to be prioritized over buying a house. It is important that the loan does not take up a substantial portion of the debtor’s monthly income and that the interest rate is low. In other situations, it may be possible to get forbearance on the loan. For example, in a situation in which a woman owed $13,000 on her student loans, she got a one-year forbearance to temporarily stop payments. She could pay off other debts during that time, shifting her focus back to the student loan down the road.

Debt does not need to control someone’s financial future. Anyone who has questions about how to get a fresh start or manage money should consult with an attorney.

Source: Realty Today, “Student Loan Debt And Home Mortgage: Should You Buy A Home While Carrying Student Debt,” Dec. 1, 2015

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