New York City-based fintech Better.com has announced that it is now offering Federal Housing Administration (FHA) home loans to consumers through its Web site.
The company noted that this new product opening was based on data that found one-fifth of people carrying student loan debt who carry student loan debt are rejected for traditional mortgages due to their debt-to-income ratio, credit score and the ability to save for a downpayment.
“Owning a home, the most conventional way Americans build wealth, can become a distant dream for millions crushed by student debt,” said Vishal Garg, Chief Executive Officer and Founder of Better.com. “Student loan payments make saving for a downpayment more difficult and mortgage payments harder to handle once you’re a homeowner. With the roll out of Better.com’s FHA loan program, we’re able to make homeownership accessible to millions of Americans who would have otherwise been denied a mortgage. It felt unfair that anyone who graduated in the late 2000s and invested in their education should now be punished and prevented from buying a home and accessing the American dream.”