How College Affects Homeownership Goals

Many people have heard that those who graduate from college generally have a significantly higher annual income than those who only graduate from high school, but how does a college degree affect homeownership? Given the high cost of a college education today, is the price worth paying? The statistics may surprise you.

According to Fannie Mae, individuals who have a college degree and who have no student loan debt are 43 percent more likely to own a home than their counterparts who only have a high school education. Even if you remain debt-free, having a college degree under your belt still makes a difference. For example, you may be 27 percent more likely to achieve homeownership if you graduate with student loan debt than high school graduates who have remained debt-free. What happens if you attend college without actually earning a degree? Statistically, those who fall in this group are the least likely overall to own a home. In fact, individuals who have taken some college classes and who have student loans are 32 percent less likely to own a home than high school grads who are debt-free.

The high cost of a college education can cause some individuals to give attending college a second thought. However, these statistics speak to the continued importance of a college education in relation to overall financial stability. With this in mind, however, be aware that student loan debt payments will be taken into consideration by the underwriter when you apply for your next home mortgage. Those who have a large amount of student loan debt may need to refinance those loans or pay off some of the debt before they can qualify for a home loan.

Are you wondering what home loan amount you may qualify for today or what amount of debt you need to pay off before you can qualify for a new mortgage? Contact a lending representative at MortgageDepot for a personalized answer to your question.

Connect with one of our loan consultants to learn more.