June 20, 2019 16 C M Y CM MY CY CMY K HC_LongBeachNewspaper_Ad_FOR-PRESS.pdf 1 3/19/19 4:44 PM Student loan debt is at an all- time high, being the second highest con- sumer debt category. According to the Fed- eral Reserve quarter four 2018 sta- tistics, over forty-four million con- sumers have student loan debt, totaling $1.56 trillion. Over seven million borrowers are either in default or forbearance, meaning they have delayed pay- ments. Consumers with student loan debt typically have had to delay buying a home until the debt is paid off, but now Fannie Mae offers options for possible homeownership. Fannie Mae recognized that increasing stu- dent loan debts over the past ten years have hindered homeown- ership for millions of Ameri- cans. Fannie Mae is offering three options to borrowers with student loan debt. A student loan cash-out refi- nance may be available to those who have already bought a home for a cash-out refinance that allows homeowners to pay off their student loan debt. This option may also be available to parents that have co-signed stu- dent loans with their children. Secondly, lenders may also exclude student loan debt being paid by someone else, such as a parent, if the borrower can pro- vide proof of payment without delinquency. Lastly, the student loan pay- ment calculation option makes it easier for borrowers to qualify based on what they are actual- ly paying towards their student loans at the time of application for a loan when calculating debt-to-income ratio. As with most any financial decision, there are benefits and risks asso- ciated. It is recommended that you speak to a lender to deter- mine eligibility and discuss the risks versus benefits to see if this is the right solution for you. While my job as a Realtor is not to provide financial advice (I’ll leave that to the lenders), I do feel it is my duty to make poten- Student loan debt doesn’t have to stall homeowners By Guest Columnist Mallory Savner, Licensed realtor, Veterans Realty Special to Long Beach Breeze Mallory Savner Special to Long Beach Breeze tial buyers aware of all possibil- ities for homeownership. If you dream of owning a home, but feel you are not able, I encourage you to speak to a Realtor or lender to discuss your options. There are so many options available to borrow- ers that many are not aware of that could help you in realizing your dream of home ownership. A buyer consultation is always free, so there is no risk.