Can You Buy a House If You Have Student Loans? Here’s What to Know

If you’re carrying student loan debt and thinking about buying a home, you’re probably wondering: can I buy a house with student loans?

The short answer? Yes, you can absolutely buy a house with student loans.

But like most things in the mortgage world, it comes down to the details. Student debt doesn’t automatically disqualify you from getting a mortgage, but it can impact how much home you can afford and how your lender will evaluate your financial picture.

Let’s walk through what you need to know and how to prepare.

Student Loans and Mortgage Approval: What’s the Real Impact?

Student loans are considered part of your overall debt—just like a car loan or credit card. So when a lender evaluates your mortgage application, they’re looking at your debt-to-income ratio (DTI)—a calculation that compares your monthly debt payments to your gross monthly income.

Even if your student loans are in deferment or forbearance, and you’re not currently making payments, lenders still have to count a payment amount in your preapproval. Why? Because those payments will eventually start, and the lender needs to ensure you’ll be able to afford your mortgage when they do.

In other words: No, student loans don’t disqualify you. But yes, they’re still a factor.

3 Common Student Loan Scenarios and How They’re Handled

Depending on your loan status and repayment plan, lenders will calculate your student loan payment in different ways. Here are the most common situations:

1. Loans in Deferment or Forbearance

If your loans are currently paused, it might look like your payment is $0—but we can’t use that. Most loan programs will require us to count a calculated payment, usually between 0.5% and 1% of your total loan balance. That number goes into your debt-to-income ratio, whether you’re paying it right now or not.

2. Standard Repayment Plan

This is the regular, fully amortized payment set by your loan servicer (often a 10-year term). If you’re making this payment, we can use it without any issues. It’s straightforward, and lenders like straightforward.

3. Income-Based Repayment (IBR or IDR)

If you’ve enrolled in a plan that adjusts your student loan payment based on your income, that lower amount can often be used in your mortgage qualification as long as we can document it properly. This is one of the most flexible options available and a common strategy for borrowers with large balances.

Should You Change Your Repayment Plan Before Applying?

If your loans are in deferment now but you plan to enter an income-driven plan, do that before you apply for a mortgage. Once we have documentation of the new (lower) payment, it can often be used in your DTI calculation potentially increasing your buying power.

Planning ahead here makes a big difference.

The Bottom Line: Yes, You Can Buy a Home With Student Loans

Student loans may impact your pre-approval, but they won’t stop you from becoming a homeowner. What matters most is how your payments are structured and how we document them during the mortgage process.

As long as we understand where your loans stand—and what repayment plan you’re using—we can help you move forward with confidence. And if you’re unsure what counts or how it all fits together, that’s where I come in.

Final Thoughts

Student loan debt doesn’t have to hold you back. It just means we need to take a closer look at your finances and create a game plan that works. If you’ve got questions about your situation—or you’re ready to see what you qualify for—I’d love to help.

Reach out or give me a call. Let’s make homeownership a reality for you—regardless of your student loan balance.