AUGUSTA, GA ( WJBF) — The Federal Housing Administration is aiming to boost home ownership for buyers with high student loans.
The new policy updates how student loan monthly payments are calculated which means buyers with high student loans will now be eligible for more loan assistance.
It could also help narrow the racial gap in home ownership.
“Statistically 77 percent of black students have to get student loans compared to their counterparts where only 50 to 60 percent of white students have to get student loans. So now with this change a lot more minorities will actually be able to purchase a home,” Realty One Group Visonaries realtor Stuart Brooks said.
The new policy bases the monthly payment on the actual student loan payment, which is often lower, and helps home buyers meet minimum eligibility requirements for a loan assistance.