Student Debt Holds Buyers Back, But Doesn’t Need To


Student Debt Holds Buyers Back, But Doesn’t Need To

Buying a home is easier than you may think!
Buying a home is easier than you may think!

Rising student loan debt continues to take blame for curtailing the number of young Americans who are able to break into home ownership, but lenders and real estate professionals say it doesn’t have to necessarily be a deal killer in qualifying for a mortgage.

The Federal Reserve Bank of New York reported last week that student loan debt rose more than 5 percent in the fourth quarter of 2013, now exceeding $1 trillion.

Young college graduates say they are delaying home ownership due to student loan debt chipping away at their finances, according to a new study by the real estate brokerage Redfin.

Sixteen percent of the 965 first-time buyers the brokerage surveyed said that student debt had previously kept them from buying a home. Of nearly 2,000 buyers surveyed, 33 percent said that student debt had led them to put off a home purchase for one to two years, while 31 percent said four years or more.

Still, home ownership is possible for buyers saddled with student loan debt, says John Wheaton, Redfin Open Book lender. “Many young people with student loans delay buying a home because they don’t think they can’t qualify for a mortgage,” Wheaton says. “Yet, many of them actually can. Underwriters generally treat student debt in a more positive light than credit card or auto loan debt.”

For example, Wheaton says that a person with $45,000 in student loans and a FICO score of 741 with an income of about $75,000 per year would likely qualify for a property starting at around $375,000 with a 5 percent down payment.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

#studentdebt, #home ownership #buying a home, #firsttimehomebuyers

 

 

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Helping Unmarried Home Buyers Navigate the Purchase


Helping Unmarried Home Buyers Navigate the Purchase

Home Buying Made Simple
Home Buying Made Simple

More couples these days are purchasing homes together before they marry, and some do not intend to marry at all. Unwed twosomes need to determine how to hold the title: whether the home will transfer to the surviving partner if the other dies, as joint tenants with the right of survivorship; or whether a percentage of ownership will pass to the beneficiary named in the will through a tenants-in-common arrangement.

They also need to consider whether both or just one partner will sign the promissory note. If both sign it, they both could be pursued by the bank in the event of foreclosure; but if only one partner signs it because he or she has a job, better credit, and contributes more to the down payment and mortgage, then he or she will be on the hook alone — regardless of how they hold the title.

Taxes must be discussed as well, mainly with regard to whether the partners will divide the mortgage interest and property tax write-offs equally if the payments are not equally divided between the two of them. They also must consider what would happen if they break up after the home purchase.

It is important to remember that purchasing a home is one of the biggest investments most people will ever make and it is also a business decision how those expenses and credits will be handled. Whether two people are married or not, they will own a property and you have to think of that as a business situation.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

 

Source: REALTOR Magazine

Real Estate Investment Set To Take Off In 2014


Real Estate Investment

A recent survey conducted by Morgan Stanley revealed that investors see commercial and residential real estate as one of the best asset investment options for 2014. Of those investors who ranked as “millionaires”, one third of them said they plan to purchase real estate this year (2014). In addition, 23% of those surveyed said they will be investing in real estate investment trusts in 2014.

If you are thinking of buying or selling or investing, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please feel free to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland

Number of First Time Homebuyers Dwindling


Number of First Time Homebuyers Dwindling

Generally speaking, first time homebuyers account for approximately 40% of the buyers in the market.  That number has recently dropped to 27% which is the lowest number since the number was tracked starting in 2008.

There are several reasons that may account for this drop in first time homebuyers.  Experts have pointed out that many of our younger people have a high student loan debt.  Add to that less than perfect credit, low employment and wage growth and the recent double-digit increase in home prices has all contributed to reducing the number of first time home buyers.

But there is one area that I think is too often over looked – and that is the misinformation that is currently out in the market.  Many times when talking to potential first time homebuyers they say that they cannot buy a home right now because they do not have the 20% down payment.  It is important to know that there are many programs out there that require as little as 3.5% down and many states – including Tennessee – have programs that will assist first time homebuyers with the down payment.  I will also point out that the definition of a first time homebuyer in Tennessee is anyone who has not owned a home for three years or more.

If you are thinking of buying or selling, talk to a REALTOR who can give you the information you need to make an informed decision.

As always, if I can help with any of your real estate needs, please don’t hesitate to text or call me at 615 417-8182 or email me at RolandLow1@gmail.com.

Roland