Is student loan debt and low credit history bad?

Question

I just graduated and moved to Spartanburg South Carolina from Jersey. Is it possible to still buy a property, qualify for an FHA if I have student loans and a credit history under 2 years? I have a great credit score and enough for a down payment but will I be denied?

Aaron W. · Answer

@Chris Corvil Congratulations on graduating! The nice thing about an FHA is it is a lower down payment requirement.

In addition to bank lending, there are other ways to finance a property such as hard money, private money, investors, and partners. Financing is an obstacle that can be overcome if you can find the great deals. If you focus on finding the great deals, then the financing will be there.

Before you get started, however, know your why in investing if you haven't already thought this through? What goals do you need to have in order to accomplish the why?

Know and establish your criteria of what constitutes a great deal before you get started. This way, you don't try to tweak your numbers to make a bad deal work.

Analyze, analyze, and analyze, even if you aren't going to purchasing properties yet. This is an invaluable skill in investing. Even if you have others bringing you deals, you need to know how to analyze them for yourself. Trust but verify!

Good luck!

Katherine Robbins · Answer

Usually FHA loans are for people with challenging circumstances so you should be okay. As long as you have the money and a steady income. It doesn't cost anything for you to get evaluated by a mortgage broker. You should find someone local (not at a big bank like Bofa etc) and see if they will look at your file and pre-approve you.