Student loan debt can make it rough for younger buyers to get mortgages.

As a starter making large payments to pay off student loan debt causes many potential buyers to shy away adding to their loan responsibilities.  Plus many borrowers don’t qualify for a mortgage because of the high monthly payments covering the student loans.  

Fannie Mae announced new policies in April aimed at helping borrowers with student loans manage their debt and, in some cases, qualify for a mortgage.  Fortunately for us, Ohio already has a program in play which began in 2009.  

The Ohio Housing Finance Agency launched the program called “Grants for Grads” which provides down-payment assistance as well as a discounted mortgage interest rate to recent college grads purchasing homes in Ohio.

Prospective buyers need:

• first time home buyer
• graduated with associate’s, bachelor’s, master’s, doctorate or other postgraduate degrees from any accredited college or university within the last 2 years
• credit score of at least 640
• meet the income and home price limits for the region 

Search

In 2016 Ohio’s program helped 408 recent grads purchase their first home.

The Fannie Mae program also allows borrowers the opportunity to refinance at a lower rate.  The program also features some unique things for parents helping with student loans and other debts accumulated for getting a degree.  Be sure to find a lender who is well versed in the programs -both Ohio and Fannie Mae.  The ins and outs of the program should be investigated.

Resources:  
Reviews.com
Debt Consolidation
CosumerAffairs

Call or Txt with Questions