Can You Still Buy a Home If You Have Student Loan Debt?

If you’re considering buying a home with student loans, you’re not alone—and you’re not out of luck. One of the most common questions is, “Do I need to pay off my student loans before I can qualify for a mortgage?” The short answer: not necessarily.

Many people become homeowners while still managing their student debt. Let’s explore how student loan debt impacts mortgage approval and what steps you can take right now to move forward.

Can Student Loan Debt Disqualify You From Buying a Home?

According to the National Association of Realtors®, about 51% of non-homeowners say student loans are holding them back from purchasing a home. Here’s why many feel stuck:

• 47% say student loans make it harder to save for a down payment.
• 45% think their student debt prevents them from qualifying for a home loan.
• 43% have never applied because they assume they won’t be approved.

But here’s the truth: many homebuyers qualify for a mortgage with student loan debt. In fact, nearly one in four homebuyers and 37% of first-time buyers carry student loans, with an average balance of about $30,000.

How Lenders View Student Loan Debt

Your student loan balance isn’t the main issue—what matters most is how your monthly student loan payment affects your debt-to-income ratio (DTI). Different mortgage programs calculate this differently:

• VA Loans: Use the actual payment or estimate 0.41% of the loan balance if no payment is listed.
• FHA Loans: Use 0.5% of the loan balance if no documented payment exists.
• Freddie Mac Loans: Same as FHA—0.5% if no payment is reported.
• Fannie Mae Loans: Typically use 1%, unless an actual payment is documented and accepted.

Understanding how these rules apply to your situation can make a big difference. For example, if you’re planning to apply for an FHA or conventional loan with student debt, your lender needs to know how to calculate your monthly obligations accurately to avoid overestimating your DTI.

Yes, You Can Get a Mortgage With Student Loans

Can you buy a house while paying student loans? Absolutely. The key is demonstrating:

• Consistent, verifiable income
• On-time payment history
• A manageable debt-to-income ratio

As Apartment Therapy puts it, experts say, “Buying a home with student loans is possible.” Their findings echo what we see every day—first-time homebuyers with student loans are making it happen.

How to Prepare If You Have Student Debt

Here’s what you can do right now to make smart moves toward homeownership:

• Don’t assume you won’t qualify—many people are surprised when they run the numbers.
• Get pre-qualified to learn what you can afford based on your student loan situation.
• Talk to a lender who understands how to navigate student loan guidelines across FHA, VA, and conventional loan programs.

Whether you’re hoping to buy in the next few months or just exploring your options, understanding your mortgage options with student loans is the first step toward making your dream a reality.

Bottom Line

You don’t need to be debt-free to become a homeowner. Many others have taken the leap—and you can, too. Let’s connect and see how close you are to qualifying for a mortgage. You may be further along than you think.

If you’re ready to get started or want to know your options, apply here, and let’s discuss your next step.