Student loan repayment from savings for a down payment on a house?

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I am a recent graduate, I currently work full time and I am also a part-time student in the evening. I wonder if anyone advice on what is best, as far as repayment of student loans as my earlier versus saving for a down payment on a house. Here are some special features. I have about 18 to 20,000 in student loans, no money saved for a house here, but I’m looking forward to townhouse or condo (from 125,000 to 150,000 $ ) over the next 2-3 years to buy . Even if I’m ready to buy, I’m probably not the 20% for a down payment, but I could not from 10% to qualify for a mortgage 80-10-10. I am aware that the students a kind of “tax relief” for the interest they pay on student loans and it would be better to pay the minimum on student loans and save more or pay a deposit How many more affluent student debt and invest in the real minimum deposit? From what I know is a student debt is not really reflected in your FICO score (use something to people for loans, and so qualify). I’m in a position of entry level, so that $ 22.500 for the moment, but I could not for a promotion in the next 6-12 months due to make $ 40,000. I’m living at home at the time, my cost of living is very low, I pay to chip in about $ 200 per month for utilities, etc. Also, I get 75% of my tuition going for my employer for the remaining 25% is paid in full on my credit card if the bill comes from tuition. I paid very good credit because I beat a previous car, my payments on time on my current car, and tuition and to pay my credit card before rechtzeitig.Was for the best chance for a beginning a first home in 2-3 years? Better to save as much as possible in a normal economy account or is there to “save” a better way, that the money (other types of savings, etc.)? Thank you! (Sorry for the long question, but I think the more information the better)

  1. Reply
    May 2, 2011 at 11:39 pm

    ask them to lower your student loan payment and save a little toward a house’ why don’t you let the car go and buy a cheaper one straight up

  2. Reply
    May 3, 2011 at 12:36 am

    You may have problems getting a home loan with outstanding student loans in arrears. The student loans will become a lien against any property you buy, which means the property will be at risk.

    Not many banks will loan knowing you have a record of not paying your loan payments, and they may loose their investment in the property because you didn’t pay your loan payments.

  3. Reply
    May 3, 2011 at 1:33 am

    If I am reading your question correctly, you are asking if you should pay OFF your student loans (not should you NOT pay them at all), instead of saving towards 10% down on a home…

    Pay off the student loans. You will be a first time home buyer and will have tons of leverage when purchasing your first home. (I’ve purchased 3 homes in my life, and have never put down the full 20%, you will just have to pay PMI until your reach 80% loan to value — which is a year end tax write off.)

    It looks so much better to go into a mortgage where your debt to income is much smaller. If you are familiar with the in’s and outs of FICO (according to your question, you do) then you probably maintain a nice credit score. Try to stay above 720, and you’ll have no problem getting financing.

    Finally, don’t be afraid to take advantage of this horrible seller’s market right now either, the gov’t is now giving up to 15K credit for first time home buyers. There are so many homes on short sale and foreclosures that have TONS of equity, so you can easily bypass that 20% down problem.

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