Do Student Loans Make Home Ownership Impossible?

Apr 02, 2018
Student loans

Income Share Agreements

What is the American Dream? For many, it includes graduating college, buying a home, and starting a family. However, a new article from CNBC questions if this is still possible. Below are the three main ways student loans prevent borrowers from buying a home:

  1. Many people with student loans have high debt-to-income ratios. Banks are often unwilling to provide mortgages to borrowers with high student loan debt and low incomes because student debt must be paid back before mortgages.
  2. When borrowers default on loans or fail to pay them on time, it damages their credit score. Without a high credit score, it can be impossible to secure a mortgage on a home.
  3. Saving for a down payment can be impossible since graduates pay most of their income to student loan payments. While living paycheck to paycheck, many young adults are unable to build the savings necessary for a home.


Not only do student loans prevent graduates from buying a home, they also affect household net worth and make it difficult to invest for the future. Read more about these consequences here.

If you don’t want student loans to stop you from owning a home, apply to our income share agreement program.

About the Author

Sabrina Kite

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