It’s no surprise that the amount of student loan debt many Millennials have, has been holding them back from purchasing a home. A National Association of Realtors (NAR) study showed that only 20% of Millennial respondents own a home, while the majority of them carry an average student loan balance of $41,200, which exceeds their average annual income of $38,800.
Among the Millennials surveyed who do not own a home, 83% said that their student loan debt affected their ability to purchase a home.
Eagle Home Mortgage, a mortgage lender and a subsidiary of Lennar, announced this week that it will offer a new mortgage program that will help home buyers pay off their student loan debt. Eagle Home Mortgage’s Student Loan Debt Mortgage Program offers borrowers as much as $13,000 that can be used to pay off student loan debt.
Here are some of the program’s terms and conditions:
- Borrowers who use Eagle Home Mortgage’s Student Loan Debt Mortgage Program can direct up to 3% of the purchase price to pay their student loans, but only if they purchase a new home from Lennar.
- Borrowers must meet credit and income requirements when using the Student Loan Debt Mortgage Program, and can qualify for loans with down payments as low as 3%.
- The program is not intended for parents who took out loans to finance their child’s education.
- The program’s maximum loan amount is $424,100, but Lennar said that in addition to the 3% contribution to student loan balances, buyers may also be eligible for other incentives – such as credits toward closing costs.
According to Lennar, the homebuilder will contribute up to 3% of the purchase price of a new home to be used to pay down student loans incurred while attending universities, colleges, community colleges, trade schools and other certificate-granting programs. The Student Loan Debt Mortgage Program is being offered on a trial basis with new Lennar homes nationwide.
Click here to learn more about the program.
For borrowers who are struggling with student loan debt, relief options are available. Many student loan borrowers are unaware that they have rights and repayment options available to them, such as postponement of loan payments, reduction of payments or even a complete discharge of the debt. It is important you contact an experienced Miami bankruptcy attorney who can advise you of all your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade Garcia McMaken, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade Garcia McMaken website at www.miamibankruptcy.com.