<p>Can't</a> Get a Mortgage? Blame Your Student Loans - DailyFinance</p>
<p>"According to the Federal Reserve, among those ages 29 to 34, only 9% got a first-time mortgage over the past three years, compared to nearly twice that figure a decade ago. With student loan debt near the $1 trillion mark, the problem isn't going to go away anytime soon."</p>
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<p>Hmm… how long do they want for a credit history? At 29, I’ll have had over a decade of credit history. Also, how do 29 year olds (or older!) have short employment records? Do they want almost a decade of work? If you get a job at graduation (from undergrad), that should be at least 5+ years of employment. I guess if you’ve gone to grad school, that could complicate things.</p>
<p>Other than that, I think there’s good advice in there. IMO, you should greatly pay down your student loan debts before buying a house. Get that cloud away from you and then focus on buying a house. Maybe that’s just the young-ness in me talking… </p>
<p>Banks aren’t taking as many risks. Don’t blame them.</p>
<p>That is interesting. Back when we were buying our first house our student loans HELPED us get our mortgage because they helped established a credit history. We also looked at houses we could afford. I’m curious where all of these 6 figure student loan debtors are when the average is $24K nationwide, AND how much house are these kids looking to buy? I would find more fault with the kind/expense of the house they are buying than their student loans being the cause for this.</p>
<p>It is not just for students, people in general are having a hard time getting a mortgage. We are looking for an apartment to buy in NY, and sellers want pre-approval for mortgage, and they want to know if their building is on my bank’s approved list before they would consider my bid.</p>
<p>Ther is no whole loan or MBS investors out there. The banks need to hold on to those loans they originate now, and they only have so much capital, and they are being very choosy about who they give loans to. This is one of the fall out of collapse of mortgage market. This doesn’t have much to do with student loans.</p>
<p>People’s inability to get a mortgage will impact housing recovery. Only people with large amount cash will be able to qualify, and that will keep out many first time buyers.</p>