Anonymous
Post 05/28/2023 08:39     Subject: Re:Will student loan repayment resumption crash the housing market?
Anonymous wrote:Won't affect the housing market at all. Having a huge student loan balance means you need a huge down payment to even get a mortgage. Servicers use a flat percentage of your total student loan balance to figure your debt to income ratio when you're making $0 payments. So doctors and lawyers all have to have a large enough down payment to offset the calculated $3-4k monthly student loan debt before even getting the mortgage.

What it will affect is credit card debt/defaults, evictions, and overall consumer spending.


Doctors all take $0 down mortgages that are tailored to doctors (student loan debt but very secure income earning potential). We had one as did all our residency friends.
Anonymous
Post 05/28/2023 07:52     Subject: Will student loan repayment resumption crash the housing market?
In some markets maybe. Inner dc suburbs? Probably not. There are barely any houses on the market. Rates need to come back down, or we need some time to pass, before more ppl will feel comfortable moving and list their home. Barely anyone is moving right now
Anonymous
Post 05/28/2023 07:50     Subject: Will student loan repayment resumption crash the housing market?
Lol no.
Anonymous
Post 05/28/2023 06:02     Subject: Will student loan repayment resumption crash the housing market?
Anonymous wrote:
Anonymous wrote:
Anonymous wrote:September 1 can't come soon enough. Expect lots of buyers rushing to buy before then because they won't be able to qualify for mortgages afterwards.


Honest question, when people with student loans apply for a home now, don't lenders factor in the student loan? I can't imagine they ignore it even if people do not need to pay right now.



When a debt is reported as having a $0 monthly payment, the bank from which you're seeking a mortgage will not factor it into your mortgage eligibility.


Not true. Bought a home in 2021; DW and I both have student loans. The lender assumed a monthly payment equal to 1% of our total student loan balance even though we weren’t making payments due to the student loan pause.
Anonymous
Post 05/28/2023 01:29     Subject: Will student loan repayment resumption crash the housing market?
No because in at least 2 of the repayment plans - payments cannot exceed 15% of monthly discretionary income -one of them I think is 10%. Many are in the first wave of borrowers whose loans have been forgiven- this is now happening more efficiently so now more like the 2nd wave. I just got mine forgiven a couple of months ago- my husband last month so this - bur loan forgiveness kicked in last year with more efficiency
Anonymous
Post 05/27/2023 20:00     Subject: Will student loan repayment resumption crash the housing market?
Anonymous wrote:
Anonymous wrote:September 1 can't come soon enough. Expect lots of buyers rushing to buy before then because they won't be able to qualify for mortgages afterwards.


Honest question, when people with student loans apply for a home now, don't lenders factor in the student loan? I can't imagine they ignore it even if people do not need to pay right now.


People have to live somewhere
Anonymous
Post 05/27/2023 19:30     Subject: Will student loan repayment resumption crash the housing market?
Anonymous wrote:
Anonymous wrote:September 1 can't come soon enough. Expect lots of buyers rushing to buy before then because they won't be able to qualify for mortgages afterwards.


Honest question, when people with student loans apply for a home now, don't lenders factor in the student loan? I can't imagine they ignore it even if people do not need to pay right now.


When a debt is reported as having a $0 monthly payment, the bank from which you're seeking a mortgage will not factor it into your mortgage eligibility.
Anonymous
Post 05/27/2023 16:59     Subject: Will student loan repayment resumption crash the housing market?
Anonymous wrote:September 1 can't come soon enough. Expect lots of buyers rushing to buy before then because they won't be able to qualify for mortgages afterwards.


That's a stretch. I would think they already have a mortgage and a few hundred dollars a month in student loan payment won't disqualify them for mortgages.
Anonymous
Post 05/27/2023 16:51     Subject: Will student loan repayment resumption crash the housing market?
Anonymous wrote:September 1 can't come soon enough. Expect lots of buyers rushing to buy before then because they won't be able to qualify for mortgages afterwards.


Honest question, when people with student loans apply for a home now, don't lenders factor in the student loan? I can't imagine they ignore it even if people do not need to pay right now.
Anonymous
Post 05/27/2023 13:54     Subject: Re:Will student loan repayment resumption crash the housing market?
Anonymous wrote:
Anonymous wrote:Won't affect the housing market at all. Having a huge student loan balance means you need a huge down payment to even get a mortgage. Servicers use a flat percentage of your total student loan balance to figure your debt-to-income ratio when you're making $0 payments. So doctors and lawyers all have to have a large enough down payment to offset the calculated $3-4k monthly student loan debt before even getting the mortgage.

What it will affect is credit card debt/defaults, evictions, and overall consumer spending.


I don't know anyone who waited to pay off student loans before buying a house; it would be dumb to wait. Tons of young lawyers and doctors buy homes.


Yes they do, with a down payment or less house than they wanted. Not sure where you got waiting for student loans to be paid off from my post, you wouldn't even have a down payment if you paid the loans off first
Anonymous
Post 05/27/2023 09:59     Subject: Re:Will student loan repayment resumption crash the housing market?
I bought with tons of student loans but then again I bought back when banks had some flexibility. I didn’t need to be “protected” from myself, I managed my debts by using products that matched my circumstances without over doing it. You would kill to live where I live now but none of it was possible without being able to go up the ladder one step at a time.
Anonymous
Post 05/27/2023 09:55     Subject: Re:Will student loan repayment resumption crash the housing market?
Anonymous wrote:Won't affect the housing market at all. Having a huge student loan balance means you need a huge down payment to even get a mortgage. Servicers use a flat percentage of your total student loan balance to figure your debt-to-income ratio when you're making $0 payments. So doctors and lawyers all have to have a large enough down payment to offset the calculated $3-4k monthly student loan debt before even getting the mortgage.

What it will affect is credit card debt/defaults, evictions, and overall consumer spending.


I don't know anyone who waited to pay off student loans before buying a house; it would be dumb to wait. Tons of young lawyers and doctors buy homes.
Anonymous
Post 05/27/2023 09:34     Subject: Re:Will student loan repayment resumption crash the housing market?
Won't affect the housing market at all. Having a huge student loan balance means you need a huge down payment to even get a mortgage. Servicers use a flat percentage of your total student loan balance to figure your debt to income ratio when you're making $0 payments. So doctors and lawyers all have to have a large enough down payment to offset the calculated $3-4k monthly student loan debt before even getting the mortgage.

What it will affect is credit card debt/defaults, evictions, and overall consumer spending.
Anonymous
Post 05/27/2023 09:17     Subject: Will student loan repayment resumption crash the housing market?
September 1 can't come soon enough. Expect lots of buyers rushing to buy before then because they won't be able to qualify for mortgages afterwards.
Anonymous
Post 05/27/2023 09:04     Subject: Re:Will student loan repayment resumption crash the housing market?
People who have loans clearly think *everyone* has loans, or more pertinent, massive loans.

That isn't going to be true at all. Some people have loans. Many of those have manageable loans. DC market has many buyers who make plenty of money. Dual income 400k HHI is normal. VERY normal.