How likely is to get a home loan from a bank when having over $60,000 out in school loans?
Monday, August 31st, 2009 at
12:08 pm
You are currently browsing comments. If you would like to return to the full story, you can read the full entry here: “How likely is to get a home loan from a bank when having over $60,000 out in school loans?”.
Tagged with: Build A House • Build House • Buy House • home loan • Home Loans • School Loans
Filed under: Free Money Saving Tips Debt Consolidation
Like this post? Subscribe to my RSS feed and get loads more!
It all depends on your Debt to Income ratio. Basically, if you are making $4,000 a month before taxes, a bank will try to make sure that your total payments (student loans, car, and house payments) does not exceed 35% of your pre-tax income. So if your total payments of long term debt would exceed about $1,400, chances are that you will get turned down. Also, a lot of banks are requiring 75% loan to value on properties. So unless you have 25% to place on a down payment, or can take a virtually unsecured loan for the downpayment,you might be out of luck at the moment.
This is all assuming you have a excellent credit score of 700+.