Those who still owe student loans now have more homebuying power under a new federal rule, Valley experts say - Mahoning Matters

With this new rule change, an FHA loan may now be possible for someone who couldn't qualify months ago, or they "could get tens of thousands to $100,000 more, depending on the scenario,” said Matt Moore of Amerifirst Poland.

Outstanding student debt is the No. 1 thing holding Youngstown Neighborhood Development Corporation clients back from owning their own home, Housing Director Tiffany Sokol said.

But now, recent changes to federal loan requirements mean debt-saddled buyers have a bit more buying power. For those who have struggled to buy a home because of student loan debt or who have been rejected for a loan recently, now might be the time for a second look, local experts said.

“When you see the statistics about the lack of home purchases among young people specifically, a lot of that really is tied to student loan debt,” Sokol said, referencing articles that pose questions like, “Why aren’t millennials buying houses?”

To see the full story from Mahoning Matters, click here.