Can You Buy a House With Student Loans? | Get it Straight from the Agent

Johnny B Good (The Flip Flop Agent) and Connery Calkins (of Remax Edge) host the first episode of their new podcast, using a "questions in a hat" format to tackle common queries from both buyers and sellers. The hosts open by discussing shifting real estate trends, noting that the frequency of home moving has slowed from every seven years to roughly every twelve years, and observing the impact of higher interest rates compared to the sub-3% era.

The first half of the episode focuses on the buyer's perspective, specifically addressing the impact of student loan debt on mortgage eligibility. The hosts clarify that while they are not lenders, student loans do not inherently disqualify a buyer, provided the monthly payments do not push the buyer's debt-to-income (DTI) ratio too high. They emphasize the critical importance of obtaining a mortgage pre-approval before viewing homes to avoid the frustration of falling in love with a property that is out of reach.

The second half of the episode transitions to the seller's perspective, discussing the unpredictable nature of closing timelines. The hosts explain that while conventional offers typically close in about 30 days, government-backed loans (like FHD or VA) may take 40 to 45 days, and cash offers can close in as little as one to two weeks. The episode concludes with a discussion on the necessity of clear, proactive communication between agents and clients to ensure all parties remain aligned through the complexities of inspections, appraisals, and closing disclosures.

• Student Loan Debt and Mortgages: How monthly payments affect the debt-to-income (DTI) ratio.
• Mortgage Pre-approval: The necessity of knowing your budget before viewing properties.
• Closing Timelines: Variations in closing speeds based on offer type (Conventional, FHA/VA, and Cash).
• Communication in Real Estate: The importance of over-communicating during the due diligence and closing phases.
• Market Trends: Changes in home-buying frequency and the current interest rate environment.

• Johnny B Good (The Flip Flop Agent): Co-host and real estate agent.
• Connery Calkins: Co-host and real estate agent at Remax Edge.
• Jody Hendrickson (Case and Home Loans): A preferred lender mentioned by the hosts.
• Lindseya Whitman (Guild Mortgage): A preferred lender mentioned by the hosts.
• Dylan Brazen (Cross Country Mortgage): A preferred lender mentioned by the hosts.

• Impact of Student Loans: Student debt is a factor in the debt-to-income ratio, but the total balance is less important to lenders than the monthly repayment amount.
• Closing Estimates:
  • Conventional Offers: Approximately 30 days.
  • Government-Backed Loans (FHA, VA, etc.): Approximately 40–45 days.
  • Cash Offers: Approximately 1–2 weeks.
• Pre-approval Importance: The hosts warn against "kicking tires" without a pre-approval, as houses can go pending before a buyer is even cleared to make an offer.

• Educational Purpose: The hosts aim to provide much-needed information to people who may not be active in the real estate market frequently.
• Client Success: The goal of the podcast is to help clients navigate the complexities of contracts, inspections, and timelines to reach the closing table successfully.

• Debt-to-Income (DTI) Ratio: The technical way lenders evaluate a buyer's ability to take on a mortgage alongside existing debts.
• Communication Preferences: The hosts discuss how some clients prefer constant updates, while others prefer a more transactional, "hands-off" approach.
• The Role of the Agent: The hosts define their role as representatives who facilitate the process, rather than acting as lenders, inspectors, or appraisers.

• Financial Personal History: Johnny mentions that neither he nor his wife has student loans, making the process easier for them personally.
• The "Transactional" Client: Johnny shares a story about a client who was so hands-off that he believed the client had blocked his number, yet the client still provided a five-star review.
• The "Invisible" Closing: Connery recounts a time when he successfully closed a deal for a client without ever actually seeing the house in person due to conflicting appointments, relying instead on his professional network.

• For Buyers: Secure a mortgage pre-approval before beginning the home-searching process.
• For Buyers/Sellers: Establish a communication strategy (frequency and method) with your agent at the start of the relationship.
• For All Parties: Complete inspections and due diligence tasks as quickly as possible to prevent delays in the closing timeline.