Millennials are on track to become the most educated generation in history. This means they are also the generation with the most student debt. Depending on the type of degree earned, as well as the prestige of the institution attended, there are some millennials who graduate college with what equates to a mortgage payment. Find Home

For those first-time buyers, and even some move-up buyers, who took advantage of the First-Time Homebuyer Tax Credit in 2008, there is an interesting program being introduced by Lennar Home Builders and Eagle Home Mortgage.

“Borrowers with Eagle Home Mortgage’s Student Loan Debt Mortgage Program can direct up to 3% of the purchase price (up to $13,000) to pay their student loans when they buy a new home from Lennar, one of the nation’s largest homebuilders. The contribution doesn’t directly increase the purchase price of the home or add to the balance of the loan.” Find Home

The program allows borrowers, whose credit and income requirements qualify, to put down as low as 3% and have a maximum loan amount of $424,100. At the time of closing, Lennar contributes up to 3% to pay down student loans incurred while attending universities, colleges, community colleges, trade schools and other certificate-granting programs. Find Home

Jimmy Timmons, President of Eagle Home Mortgage, gave more context about the reasons behind the creation of the program,

“Americans are more burdened than ever by student loans, with $1.3 trillion in outstanding student loans spread out among 42 million borrowers.  Find Home

Particularly with millennial buyers, people who want to buy a home of their own are not feeling as though they can move forward. Our program is designed to relieve some of that burden and remove that barrier to owning a home.” Find Home

According to the Wall Street Journal, “housing observers said other builders are likely to look to mimic the program, which could help lure more of the critical first-time-buyer segment into home purchases.”

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Bottom Line

If you are one of the many millennials who may have delayed purchasing your first home, or feel stuck in a house that no longer fits your needs, there are programs and options available to help you achieve your dream!
source: Builder Offering to Pay Off Student Loans for Buyers | Real Estate with Keith Kreis


Is It Possible To Buy A Home While Carrying A Student Loan?

First time home buyers face a great challenge breaking into the housing market. Rent keeps increasing and the availability of low-priced homes remains limited. Add several thousand dollars in student loan debt to the scarcity of low-value homes and budding buyers are likely to be convinced that they are not in a position to buy. Based on recent research, those who have completed a bachelor’s degree and intend to buy homes are modestly affected by their student loan repayment in their search. In this article, we take a look at tips from financial experts regarding how to acquire a mortgage while at the same time servicing a student loan. Find Home

What repayment strategy do you have to get rid of the student loan?

The strategy you choose to pay off your student loan plays a great role in determining whether you will be able to service the mortgage and the student loan concurrently. Read more… Find Home

Is It Possible To Buy A Home While Carrying A Student Loan?