Ameritech Financial: Federal Student Loans Don't Have to Get in the Way of Dreams to Buy a House
ROHNERT PARK, Calif., April 5, 2018 /PRNewswire/ -- It takes a lot to buy a house. Mortgages can cost hundreds of thousands of dollars, or more depending on location, and then there's closing costs, potential HOA fees, insurance and any other necessary expenses like moving and appliances. For young adults with student loans, it may seem impossible to buy a house. Ameritech Financial, a document preparation company that helps borrowers apply for federal income-driven repayment plans, reminds borrowers that it is possible with support and a good plan.
"Buying a home is a big milestone in life that student loans may get in the way of," said Tom Knickerbocker, executive vice president of Ameritech Financial. "Whether borrowers can't save up any money for a down payment or worry that they won't qualify for a mortgage, they might be able to apply for a federal repayment plan that could potentially help."
According to a recent article, student loan borrowers are less likely to have a mortgage. Interestingly, the likelihood decreases by 5.7 percentage points per $10,000 increase in student loans. The inability to get a mortgage is worse for low-income borrowers.
Why are student loan borrowers delaying buying houses? It may be an obvious answer to some, but it's not necessarily a simple one. Student loans may take up too great a portion of monthly income. Borrowers may be able to cover all their monthly expenses with little or no ability to put any money into a savings account for a down payment. Or, borrowers may fall behind on their student loans or other debt and have a poor credit score. Finally, borrowers may have a high debt-to-income ratio that may get in the way of getting approved for a mortgage.
Federal repayment plans can offer some assistance with home-buying dreams. Income-driven repayment plans (IDRs) calculate payments on income and family size, potentially reducing payments and allowing borrowers to save money, stay current on debt payments and lower their debt-to-income ratio. IDRs are long-term solutions that are intended to help borrowers whose payments make up more than 10 or 15 percent of their discretionary income. After 20 to 25 years in the program, any remaining balance may be forgiven.
"At Ameritech Financial, we understand that student loans can get in the way of financial goals," said Knickerbocker. "We feel it's important that borrowers have support and know their options. We help struggling borrowers understand federal repayment options and apply for IDRs if the borrower believes that the program would benefit their financial situation, whether they want to buy a house in their future or work toward other goals."
About Ameritech Financial
Ameritech Financial is a private company located in Rohnert Park, California. Ameritech Financial has already helped thousands of consumers with financial analysis and student loan document preparation to apply for federal student loan repayment programs offered through the Department of Education.
Ameritech Financial is a member of the Association for Student Loan Relief (AFSLR), and each representative on the phone has received the Certified Student Loan Professional certification through the International Association of Professional Debt Arbitrators (IAPDA).
Ameritech Financial prides itself on its exceptional customer service.
Contact
To learn more about Ameritech Financial, please contact:
Ameritech Financial
5789 State Farm Drive #265
Rohnert Park, CA 94928
1-800-792-8621
[email protected]
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SOURCE Ameritech Financial
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https://ameritechfinancial.com
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