How Student Loan Debt Impacts Homeownership for Millennials

A recent report by Freddie Mac looks at the how student loan debt impacts homeownership for millennials.

“The low home ownership rate among millennials is still something of a puzzle—it cannot be explained solely by the increase in student loan debt,” says Sean Becketti, chief economist, Freddie Mac.

“However, student debt plays a role—higher balances are associated with a lower probability of home ownership at every level of college and graduate education.”

Data confirms that not all student debt is created equal. Students who attended schools with less-certain educational benefits have not fared well. Borrowers who did not complete their studies have fared worst of all. These groups are likely to continue to affect the pattern of homeownership among millennials.

Moreover, a recent change in Federal Housing Administration policy will make it more difficult for some student loan borrowers to qualify for a mortgage.

If you have questions about how your student loan or any other debt impacts homeownership, contact me.

I also recommend that any first-time homebuyers, or anyone with questions about the homebuying process consider taking a free homebuyers class offered by Credit Counseling of Arkansas.

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