STUDENT LOANS

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STUDENT LOANS

Taliah Brown
Philadelphia, PA · Member since 2015 · 6 posts · 0 votes

Hello Everyone!

I am interested in purchasing my first rental property by the end of the year.  I have a decent credit score (700 or so) but I have about 180k in student loans that are in deferment ( I have two masters degrees).  I am just recently switch careers to a totally new industry so my salary is pretty low (35k). 

My questions are:

- Should I leave my student loans in deferment and continue to save for a down payment for my first property or should I start paying my student loans?  I know student loan payments are factored in when being considered for a mortgage so I don't know if making payments will look better to lenders.

- Will I have a hard time qualifying for a loan with my student loan debt being so high and my income being so low?  I am pretty much in an apprenticeship program right now so once I am done and get a full time job my salary will increase significantly but that won't be for another year (2016) and I am looking to get a rental property by the end of the year.

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Dan MackinBusiness Member
Real Estate Agent · Erie, CO · Member since 2014 · 1k+ posts · 512 votes
11y

That sure is a lot of debt.  There are a few things I can think of to get the ability to purchase a first home.

1. Find someone who is willing to partner with you

2. Get married (Sure helped my income ratio even though my wife came in with 70k in loans.)

3. Just wait it out and get that income up

4. Find a seller who will finance

Student loans can be the death of financing for lots of people, but it's just a part of life for so many now.

720-466-3378
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  • Sean McNamara
    Denver, CO · Member since 2015 · 61 posts · 21 votes
    11y

    Yes, start paying off those student loans. Most banks count deferred student loan debt against income. I would talk to your banker first to see what their stance is but having loans that large with income that low does not make you the ideal borrower from the banks point of view, far from it. Here's an old article but still holds true: http://blog.credit.com/2013/07/how-student-loans-c...

    Hope this helps!

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  • Taliah Brown
    OP
    Philadelphia, PA · Member since 2015 · 6 posts · 0 votes
    11y

    Great article!  Thanks so much!

    I wonder if I will have to put off my real estate endeavors until I find a new job making more money.  I can put but so much of my income towards my student loans and it definitely  won't be enough to make a significant dent in the total by the end of the year.

    Still researching...

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  • Anthony Jenkins
    Investor · Philadelphia, PA · Member since 2014 · 9 posts · 0 votes
    11y
    Joshua Dorkin any ideas?
    0Reply
  • Dan MackinBusiness Member
    Real Estate Agent · Erie, CO · Member since 2014 · 1k+ posts · 512 votes
    11y

    That sure is a lot of debt.  There are a few things I can think of to get the ability to purchase a first home.

    1. Find someone who is willing to partner with you

    2. Get married (Sure helped my income ratio even though my wife came in with 70k in loans.)

    3. Just wait it out and get that income up

    4. Find a seller who will finance

    Student loans can be the death of financing for lots of people, but it's just a part of life for so many now.

    720-466-3378
    1Reply
  • Elizabeth Colegrove
    Hanford, CA · Member since 2013 · 5k+ posts · 1k+ votes
    11y

    I would definitely go talk to a mortgage broker! They are going to be a fantastic resource 

    0Reply
  • Taliah Brown
    OP
    Philadelphia, PA · Member since 2015 · 6 posts · 0 votes
    11y

    Thanks all!! 

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