As millennials come to market, many of them are carrying heavier than normal student loan debt. With the large benefits of owning a home, Fannie Mae sought for a way to allow for more debt, like a student loan, and still approve a mortgage to create more buyers. You can follow more on this guideline change directly at Fannie Mae’s website here.
Allowing for more debt in order to become a homeowner is a hand-in-hand plan to help people maximise tax benefits derived from a mortgage. The goal is to use some of the benefits to pay down student loans. Likely wishful thinking.
Overall, Fannie Mae is making it easier to become a homeowner, in hopes that the tax benefits will allow for more money in taxpayers hands at the end of the year to pay off this debt. Still a better alternatve to renting with no IRS Tax stratagies…until the Tax Reform may re-write that!
Want to learn more about the benifits or conerns to the higher debt limit, reach out to Anthon here for more!