Anonymous
Anonymous asked in Family & RelationshipsMarriage & Divorce · 4 weeks ago

How do new graduates afford a new home??? When they have school debt?

5 Answers

Relevance
  • MissA
    Lv 7
    4 weeks ago

    Almost nobody except the children of the very affluent are actually buying a house outright straight out of school.  And they are using Mom and Dad's money.

    But really almost nobody buys a house outright.  They take on a mortgage, in which they put a down payment down and then pay for the rest of the house gradually over 15-30ish years.

    Student loan debt, if it's proportional to your income and you have been paying it off in accordance with whatever terms you set up with your lender, really doesn't hurt your ability to get a mortgage at all.  In fact it actually helps, because it shows that you pay your debts.

  • T J
    Lv 6
    4 weeks ago

    They can afford it, they just don't care, I know a professional couple, make tons of money, have long been out of med school. They have spent money like crazy and still have not paid off the school loans, We are looking at people who just want to Live in a big house, have all kinds of cars/trucks, spend money with no regard. I guess they like living in debt. He just spent 65k on a new truck, but still has school loans. They both are doctors, and have been out of school for over 20 years. I guess living on credit is their mind set.

  • David
    Lv 6
    4 weeks ago

    A relative "lends" them the 30% down payment and closing costs, plus co-signs the mortgage

  • i + i
    Lv 7
    4 weeks ago

    For the most part, they cannot. 

    But that does not seem to stop 

    people from putting themselves 

    further and further in debt-slavery.

  • What do you think of the answers? You can sign in to give your opinion on the answer.
  • 4 weeks ago

    How about asking your question in business and finance. We give advice, here, on FAMILIES AND RELATIONSHIPS.

Still have questions? Get answers by asking now.