Real Estate News

Student loans and maintenance fees still possible obstacles to buying a home

Published: 04 Apr 2017

A constant financial theme among millennials is the difficulty in paying off debts, especially student loans. This is rightly considered a barrier for anyone buying a home, and what makes it an even more daunting topic is the way it can add on to other daunting financial concerns.

Student Loan Hero's look at 2017 statistics found a student debt figure of $1.31 trillion in the entire U.S., with a delinquency rate of 11.2 percent. Most of these borrowers had made direct loans, which accounted for $949.1 billion of the total sum, and the average monthly loan payment, at least for those between 20 and 30 years old, was said to be $351.

However, as much as this could be an influencing factor in choosing a mortgage, other costs can also pile up, even for things that haven't actually happened yet. For example, the future refurbishment of an older home could also increase debt later on, and with the existing student debt on top of it buyers may face incentives to steer away from these properties.

Real estate agent Emily Restifo told The Seattle Times about the way choosing properties with these homeowning concerns in mind can influence sales.

"The buyer should never stretch themselves so thin that the maintenance costs are more than they can handle," she said. "Better to buy a more modest property and maintain it to the highest standard."

Some are specifically reacting to the effect student loans continue to have on possible housing applicants. The Washington Post reported on MarylandSmart Buy, an initiative to help borrowers reduce their debt while trying to put money forward for a home. The program seems to reflect attempts from the state to encourage more students to purchase, the source said.