I asked about the student loan combining with home mortgage because my brother had it done but I didnt get the specifics on it. I have had my job for

Asked by Lori, 55106 Wed Jan 27, 2010

three years and I do have about 2,000 in bill debt that I will pay off. Other than that I have $30,000 student loans. I want a home so bad it's frustrating to think it will take years to ever buy a home.

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Kristin Bolinske’s answer
Kristin Boli…, , 55347
Thu Jan 28, 2010

As many of the responders have already stated, the first step to determining what you can afford is to speak with a loan officer. A great loan officer that is out for your best interests will have no issue working with you on ways to increase your credit score, or help decrease your debt in order to qualify for a home. The loan officer I primarily work with offers this, and more, as services to her current and potential clients. If you are looking for a referral, touch base with me and I will give you her information.

Regarding your current debt situation, a lot of individuals and families that own homes have student loan debt they are working to pay off. Not knowing your financial situation, and just considering your student loan debt of 30k +2k I'm sure you can still qualify for a home. Additionally, if you are a first-time home buyer, the market couldn't be better for you. The 8k tax incentive is still available, and home prices are still relatively low. If you are in the market for a "first-time home" the ones in great condition are still moving off the market quickly. One home in particular that I have been watching sold above asking price!! Let me know if you are interested in putting feelers out on the market (no obligation), but it may be helpful in terms of deciding what to do if you know the inventory of the cities you wish to reside in.

0 votes
Sherri Sherpy, , Saint Paul, MN
Wed Jan 27, 2010
Lori, did your brother already own the home and then rolled his debt into the mortgage? I am assuming that is the case...he did what is called a cash-out refinance. It is when you have enough equity in your home to be able to roll in other obligations and only have the one payment. I hope that it wasn't done when he actually purchased the home, as that would have been mortgage fraud on the lender's part and a federal offense.

I'm not sure why you think home ownership is not attainable just because of your student loans? It is all about your credit scores, credit history and debt-to-income ratios. If those fall within guidelines, homeownership can be yours.

As I mentioned in your previous post, take a moment to get approved. There is no cost and it is quite easy. That way, you will know for sure if you can start shopping for a new home now or have to wait.
1 vote
Eric Michael…, , San Diego, CA
Wed Jan 27, 2010

Don't despair. My colleagues below have given you fantastic advice. I can imagine your frustration! I know what it feels like to spend hard earned cash, to borrow, to pay your bills on time, to obtain an education, and then to have no one trust you with a loan after you've paid on time for years on end!

It's tormenting beyond belief. But, the $30k in loans you have truly may not disqualify you from owning your home, trust me on this!

A mortgage broker will explain to you (see a GOOD mortgage broker), that it is not "necessarily" the total debt you owe, but your monthly debt to asset or debt to income ratio.

Much of what they'll look at is not the total amount you owe, but what your monthly payments are, and how timely you've been in making those payments.

Mortgage brokers, assisting you will also look at your FICO or Credit Score, which need not be astronomical to qualify for an FHA Loan product. An average score of between 620 to 640 may be just fine. Mind the fact that I use the word "may," because I do not know your full financial picture.

What I do know is that you've been employed for three years, when FHA requirements only require 2 years of employment, your $30k in loans probably have low monthly payments, or at least relatively low monthly payments, and if you have okay credit you may very well be in far better shape than you think.

Go talk to a mortgage broker or give one a call. If you can't find one that you trust, or if someone sounds pushy on the phone, just thank them for their time and hang up. Call the next! If you're still having trouble, call me!!!!!

I'll put you in touch with an ethical, honest, superb mortgage broker or give you several names who you can try, to erase even my own biases from the situation.

You'll be fine! One thing I want you to remember is this: Home price ARE NOT INCREASING RIGHT NOW! In a strange way, the longer you wait, the bigger the home you'll be able to buy for your money.

Of course, if prices increase that goes out the window, but we're very far from a rebound. It's going to remain an excellent time to buy for several years, in all reality. It might pain me, as a professional realtor to say that, but it's 100% true!

So, what does all the banter and cheerleading above this sentence mean for you? Well, it means you're going to be able to buy your house, you're going to have a great house, and if it takes a few months longer, well that just means you'll be able to buy an even nicer house "tomorrow" than you would be able to buy "today."

So chin up, call a mortgage broker and if you don't fine one that you feel comfortable dealing with, call or e-mail me and I'll assist you to the fullest extent of my ability.

Eric M. Abrams
CA DRE# R01862927
Web Reference:  http://www.ericmabrams.com
0 votes
Kimberly Koe…, , Woodbury, MN
Wed Jan 27, 2010

I can truly understand where you are at and the desire for wishing to own a home. The advice that has been shared with you over the past day is fairly sound.

Step 1: Figure out what your lifestyle truly costs you and what you truly can afford to spend on a house payment. Think of all the little things that may come up and or how much the things like gardening will add to your lifestyle. (I am a gardener myself and boy each spring it sure is expensive LOL)

Step 2: Call a trusted loan officer and sit down with him or her and review your situation and get pre-approved.

Step 3: Meet with a trusted REALTOR and learn about the home buying process, what to be prepared for when looking at homes in a high lender mediated market (referring to foreclosures and short sales), see what a purchase agreement looks like and develop a road map to buying a home. (You could always start here but and have the Realtor recommend a few different loan officers to speak with)

It is very difficult for anyone to give you advice without truly seeing your personal finical picture. I know many buyers have a hard time taking the step of picking up the phone and speaking to a loan officer however if you really want to purchase a home it is the next step for you to take. I know that can be scary. If you would like a recommendation to 2 outstanding loan officers I would be more then happy to give them to you.
0 votes
CCC, Home Owner, San Diego, CA
Wed Jan 27, 2010
That program is not available today. There use to be a 120% LTV and things like that but not anymore. That program was part of the subprime mortgage. But, imagen about it, property had had significant loss in the last years and your mortgage is already 120% the value of the property(100%).

Or , as other had mention and will mention, if he already owned a home, then he refinanced his property.

Most programs right now will ask for down payment. Realty is not nice, but it is reality at the end of the day.
0 votes
Anna M Brocco, Agent, Williston Park, NY
Wed Jan 27, 2010
Have you visited with a qualified loan officer(s) yet, if not you should and see exactly what your budget can handle--then take it from there--home mortgages are just that, for the purchase of real property--did your brother perhaps do an equity loan after he purchased--again if you haven't done so yet, visit a loan officer.
0 votes
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