Can You Buy a Home With Student Loan Debt?

Can You Buy a Home With Student Loan Debt?

May 01, 20252 min read

Yes, you can. BUT there are some key things to know. Student loans don’t automatically disqualify you from getting a mortgage. In fact, many borrowers successfully buy homes while still paying off student debt. The secret lies in understanding how lenders assess your financial situation and how to strategically position yourself.


1. How Lenders View Student Loan Debt

Lenders focus on your DTI (Debt-to-Income) ratio, not just the fact that you have loans.
DTI = total monthly debt payments ÷ gross monthly income.

  • Aim for a DTI under 43% (lower is better).

  • This includes student loans, credit cards, car payments, etc.

📝 Pro tip: Use income-driven repayment plans to potentially lower your monthly payment and improve your DTI.


2. Your Credit Score Still Matters

Student loans can impact your credit positively if you make consistent, on-time payments.

  • A score of 620+ is the typical minimum for most conventional loans.

  • FHA loans allow for scores as low as 580, sometimes even lower with a bigger down payment.


3. Down Payment Options for Buyers With Student Debt

  • FHA loans: As low as 3.5% down.

  • Conventional loans: 3% for first-time buyers (with income limits).

  • Down payment assistance programs: Federal, state, and local programs can help reduce upfront costs.


4. Student Loans in Deferment or Forbearance

Even if your loans are paused, lenders often still count a percentage toward your DTI — typically 0.5% to 1% of the total balance. Be prepared for this during the pre-approval process.


5. How to Strengthen Your Application

  • Lower other debts (like credit cards).

  • Increase income with side hustles or promotions.

  • Save aggressively for a larger down payment.

  • Add a co-borrower with little to no debt.


Bottom Line

Having student loan debt doesn’t mean you can’t buy a home. It just means you need a plan — and a lender who understands your financial picture.

Ready to explore your options? Let’s talk about what’s possible — even with student loans on the table.

Can You Buy a Home With Student Loan Debt, Student LoanStudent Loan Debt
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The Adler Team Mortgage Lender

The Adler Team Mortgage Lender, The Legendary Team Powered by Rize Mortgage, NMLS #1604663

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