Student debt doesn’t stop home ownership: report

A median-priced house could be in reach for recent college grads

Sep.September 05, 2014 01:30 PM

A new study contends that recent college graduates carrying the average amount of student loan debt can afford to buy a home in a majority of markets, including Palm Beach County.

RealtyTrac calculated the average student loan to be $22,873 in Florida and concluded that a minimum salary of $31,159 could buy a median-priced home. They labeled an “affordable home” as one with payments that do not exceed 43 percent of a month’s salary. The research firm used a 30-year mortgage with a 4.13 percent fixed interest rate and a 20 percent down payment for its study, according to Palm Beach Post.

That 20 percent down payment raised skepticism from Skip McDonough, president of Jupiter-based Family Mortgage. McDonough believes most recent graduates can’t afford that down payment unless they receive help.

“Not everyone has mommy and daddy willing to throw down that much money,” he said.

Other factors such as credit ratings, credit card debt and big ticket impulse buys can also derail this line of reason, according to McDonough. [Palm Beach Post]Frank Maradiaga

Related Articles

Rendering of the project

Time Equities plans apartments, retail on former office site in West Palm

Howard Lorber and Barry Zubrow with unit 1601 at The Bristol (Credit: Getty Images)

Howard Lorber flips condo at the Bristol to investment banker Barry Zubrow

From left: 3716 Embassy Drive in West Palm Beach and 80 Nottingham Place in Boynton Beach

South Florida properties involved in $85M debt relief scheme head to auction

603 Village Boulevard (Credit: Google Maps)

AmTrust Bank building in West Palm sells for $8M

Broadstone City Center with Alliance Residential’s Bruce Ward and Nuveen CEO Jose Minaya

Nuveen pays $103M for West Palm luxury apartments

One West Palm rendering and Jeff Greene

Construction worker injured at Jeff Greene’s project in West Palm

Al Adelson and the Bristol

High on his own supply: The Bristol developer buys a unit at his condo tower

Jason Hochman, Greg Miller, Scott O'Donnell, Michael Ciadella and 901 Northpoint Parkway 

West Palm office parks sells for $12M in tight market