As more millennials are preparing to buy a Boston condo for sale, one issue is — student loans. The Project on Student Debt calculated that just about 7 in 10 college graduates in the Class of 2015 had student loan debt. Additionally, the average student had about $29,000 in loans.
With mortgages often amounting to well over two hundred thousand dollars, many first-time Boston condo buyers may be asking whether they can even qualify for financing.
So, is it possible to buy a Charles River Park condo for sale even with thousands of dollars in student loans? It depends.
What’s Your Debt-to-Income Ratio?
It all comes down to your debt-to-income ratio, or what percentage of your gross monthly income goes toward your mortgage payments.
Lenders recommend a debt-to-income ratio no greater than 36%, with no more than 28% of your monthly income going toward paying off your mortgage. As an example, someone who earns $50,000 in a year and has $1,500 in monthly debt payments would be right at the 36% recommendation.
So even if you are saddled with thousands of dollars in student loans. It is possible to obtain financing for a home if your debt-to-income ratio is right around that recommended ratio.
You Also Need to Consider Credit History
When Charles River Park condo buyer applies for a mortgage, lenders look at whether they pay their bills on time and their employment history. For instance. If you have good credit history, that may further help you qualify for a mortgage.
You can always talk to a reputable lender about whether you can qualify for a mortgage with your student loan debt. Talk with us and we can help you get started with the mortgage pre-qualification process.
If you’re thinking of buying a Beacon Hill home or Boston downtown real estate in the area. We can recommend a reputable local mortgage lender so you can discuss the right mortgage for you, including interest rates and down payments. We even offer a free mortgage calculator on our website that can help you calculate monthly mortgage payments.
Contact us today and we can get started on your Boston condo for sale home search.
Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs
In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.
For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.
Charles River Park
Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.
Ford Realty Inc
137 Charles Street
Boston, Ma 02114
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