Options besides bank mortgage

6 Replies

I've recently tried to apply for an FHA loan and because of student loan debt can't get pre-approved. I don't have anyone that I know that I could partner with. I'm feeling so discouraged on how to get started in real estate. I was hoping to house hack my first home then use it as a rental but feeling pretty stuck.

Hi Christina! There's no reason you shouldn't be able to get approved despite student loan debt. They can use your monthly payment instead of the 1% calculation. New guidance came out earlier this year about it but some mortgage lenders aren't tracking. I can point you in the right direction so you can pass along the new rules and advocate for yourself:)

@Jennifer A Barry oh my goodness, you are a lifesaver. I spent all night going over what you sent me and looking up the guidelines for Freddie Mac and Fanny Mae and I've worked up an email showing  them that the calculation they are using is wrong. I am on an income sensitive repayment plan and they were trying to take 1% of my total debt to use even thought that is no where near what I pay a month. You guys have helped me advocate for myself and hopefully they will see this and it will help me get pre approved. Fingers crossed. And if they don't I will use this knowledge to go to other lenders just like y'all suggested. Thank you! 

Git it, girl!! It’s easier than ever to get approved with student loan debt:) Not everybody is tracking the near-constant changes. If you work in public service, join our PSLF Facebook group. Many of us have high student loan debt (medical school, law school, etc.) so there’s a ton of group knowledge about how to navigate life (and real estate!) while carrying a lot of debt. Heck, even you don’t work in public service you may find some of the topics helpful. Just unfollow and keyword search for mortgage information, filing taxes, etc. Best of luck and if you get stuck, feel free to reach out! -Jenn