One of the biggest stories in finance today is the “student loan crisis” and it’s affecting people in Birmingham, Alabama. In fact, one of the few issues that nearly everyone, regardless of political affiliation, agrees upon is that something needs to change.
We don’t know yet whether this change will be coming in the form of forgiveness, consolidation or something altogether different. However, for those who already have student loan debt, waiting for these changes may not be the best course of action. After all, just because you have a student loan doesn’t mean you’re not ready to move forward with life.
The idea of purchasing a house when you have a student loan you are already paying on may seem daunting, but it is not impossible—in fact, with a caring and knowledgeable lender on your side it can be easier than you may think.
Buying a Home with Student Loan Debt is Possible
While it may have a bit of stigma, student loan debt is just like any other debt. If your current earnings can support your ability to pay this loan and a home loan, you may be able to purchase a home. If the existing debt keeps you from getting the best possible interest rate, there’s no need to worry. You may be able to refinance later if you get that debt paid off or down.
Finding The Right Loan is Vital
If you are dealing with student loan debt, you are probably tossing everything you can at that to try to make your debt go away. That’s perfectly understandable. However, the existing debt may mean that it's tough for you to put together a 20% down payment that you’ve always heard was a necessity. Luckily, many other lending options require a smaller down payment or that allow you to avoid putting money down altogether. Working with a lender in Birmingham, Alabama that is comfortable with USDA and FHA loans is always a good option.
If home ownership is something you’d like to learn more about, First Liberty Financial in Birmingham, Alabama would like to talk. We encourage you to check out our guide to home loans and managing student debt. Then, reach out to us and let us help you take the next step towards owning a home!