In a recent survey by the National Association of REALTORS (NAR), 83 percent of millennials are delaying buying a home by an average of 7 years! The reason? The heavy weight of too much student loan debt. Many millennials are having trouble keeping up with their bills, and their debt-to-income ratio is destroying any hope of becoming a home owner of a house for sale in Stallings. So what can be done? Read on for details on how to help millennial home buyers and the problem of student loan debt.
Bankruptcy can seem like an intimidating option for millennials drowning in debt. Since 1998, student loans were not eligible for discharge through bankruptcy. However, in 2005 Congress added an “undue hardship” condition, which makes bankruptcy a possibility for student loans.
The U.S. Department of Education recently announced that it seeks to clarify the definition of “undue hardship,” with the goal of giving more student borrowers the opportunity to apply for bankruptcy or take advantage of other loan forgiveness options. Perhaps this will give millennials to opportunity to buy their dream home for sale in Concord sooner than later.
Home Buying After Bankruptcy
Most people who file for bankruptcy have to wait a minimum of 2 years before they can be considered for a home loan. Depending on the individual’s personal circumstances and loan type, some may have to wait for up to 4 years.
For those filing for bankruptcy, it is best to look at FHA and VA loans, as those tend to be more lenient on bankruptcy restrictions. With the increase in eligibility for bankruptcy for those with burdensome student loan debt, you may see more millennials in the market for houses for sale in Fort Mill.
What is your take on millennial home buyers and the problem of student loan debt? Please share your thoughts!