For many people, student loans are a normal part of life. They helped you invest in your education—and now you’re ready to invest in a home. If you’ve been wondering whether it’s possible to qualify for a mortgage while still paying off student loans, here’s some good news: it is.
With the right preparation, guidance, and loan program, you can move forward with your homeownership plans—student loans and all.
Your Student Loans Are Only Part of the Equation
When lenders review your mortgage application, they look at your full financial profile—not just one piece. Yes, your student loans will be considered, but so will factors like your:
Even if your student loan balance is large, it doesn’t automatically prevent you from qualifying. Loan programs exist for a wide range of financial situations, and our team can help you explore which ones work best for you.
What is a Debt-to-Income Ratio?
Your DTI is the percentage of your monthly income that goes toward debt payments, including student loans, car loans, credit cards, and other obligations. Lenders use this number to gauge how much room you have in your budget for a mortgage payment.
If your DTI is higher than average, you may still qualify for certain mortgage programs—especially if other parts of your financial picture are strong. In some cases, adjusting your student loan repayment plan can also help improve your qualifying numbers.
Credit Score: A Key to Unlocking More Options
A healthy credit score can open the door to more mortgage options and better interest rates. Paying all your bills on time, keeping credit card balances low, and avoiding late payments can boost your score over time.
One important tip: the score you see in a free credit app may not match the score lenders use. Our team can help you understand exactly where you stand so there are no surprises during the mortgage process.
Down Payment Possibilities
Many buyers assume they need 20% down to purchase a home. That’s not always the case. Loan programs are available with low down payment requirements, sometimes as little as 3% down. You may also be able to use gift funds from family or qualify for down payment assistance programs, which can make homeownership even more achievable while managing student loans.
Steps You Can Take Now
If you’re planning to buy a home with student debt, a little preparation goes a long way:
Student loan debt doesn’t have to stand between you and your dream of homeownership. With the right strategy, the right loan program, and the right team on your side, you can take the next step toward buying a home.
If you’d like to know exactly how your student loans might affect your mortgage options, reach out to one of our expert mortgage advisors today. We’ll review your unique circumstances and help you find a path forward that works for you.
