Home Buying in Tampa>Question Details

Beth R., Other/Just Looking in Wesley Chapel, FL

If you default on a private student loan, will that prevent you from purchasing a home?

Asked by Beth R., Wesley Chapel, FL Tue Mar 4, 2014

I defaulted on my private student loans about 8 months ago and I am currently on a repayment plan with the collection agency that took over my loan. All of my payments are automatically deducted from my checking account. My husband and I would like to purchase a home with in the next year or two and we weren't sure if my default would prevent us from buying. We have been working towards paying off our debt and improving our credit. At this point our only debt is my student loans and one car loan. My husband has no student loan debt of his own. Also, if it does prevent me from getting approved, Would it be a wise decision for just my husband to apply for a mortgage? He makes a decedent income and has minimal debt.

Thank You.

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Yes it may, depending on what kind of ding on your credit the default created. I had a client that defaulted the month before closing and the mortgage company denied her loan when they rechecked her credit 1 week before closing because her credit score dropped below their minimaly required score. However, if you had a great score the default my not have brought you down far enough to disqualify you. In any case you should be good in a few months as the mortgage brokers usually want 12 months clean credit. I have an excellent mortgage broker, if you would like to speak with someone who can give you facts about your specific situation.
Marsha Skinner
813-418-0011. Marshaskinnerhomes@gmail.com
0 votes Thank Flag Link Tue Mar 4, 2014
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