Ever since the mortgage rule changes that went into effect in 2009, a small but ever growing title wave has been building. Individuals who lost their jobs during the downtrend of the market and decided to go back to school to earn a different degree, or updating their personal education, to put them into a better position for a better paying job. They are not only facing an ever tighter job market but also have put themselves financially behind the 8 ball when it comes to being able to qualify for a mortgage.

I have spoken about this change at many meetings and also to anyone who was interested in learning. I am not the only one who is talking about it. Today a post titled “How $268,000 Of Student Loans Barred Us From Getting A Mortgage” by Jeff Banks*, as told to Camille Noe Pagán, LearnVest and it exactly tells it like it is.

Your student loan now has to be accounted for during a mortgage application. In the past you did not have to account for it but since the mortgage rule change that has been in effect since 2009 you now have to account for your student loan on your loan application.

Student loans need to be repaid and you cannot file bankruptcy against them. They will be with you until you kick Sally Mea to the curb by paying off your student loan in full. In my blog post titled “Getting out of debt starts with a simple budget” I covered how to get out of debt and with my blog post “Can I afford buying a home or do I need to make some changes”. I made you, the potential buyer, lay it all out for yourself and face the sometimes harsh reality of your own personal budget.

For more information and ideas on how to get out of debt and stay on track contact the Settles Team.

Just to make it clear. I am not an attorney, CPA, or tax advisor. All of this information given is not to be taken as legal, financial, or tax advice. This is just for informational purposes and comes from personal experience as well working with past and current clients.