Can You Buy a Home If You Have Student Loans? Three Things to Know.

I met with a first-time buyer last week who was convinced she had to wait to buy a home because of her student loans. When I told her she could still qualify, she looked shocked. I hear this all the time. Many buyers think student debt automatically shuts the door on homeownership. The truth is very different. Student loans do not stop you from getting a mortgage. I have helped many buyers with education debt purchase homes they love. The key is understanding how lenders view those loans and what options work best for your situation. Here are the three most important things to know.

1. Lenders focus on your monthly payment, not your total balance

A lot of borrowers worry about the total amount they owe. What matters more in a mortgage review is your monthly payment and how that payment fits into your debt-to-income ratio. Your debt-to-income ratio shows what percentage of your monthly income goes toward debt payments. This includes credit cards, car loans, and student loans. A manageable monthly payment can keep your debt-to-income ratio in a healthy range, even if you have a large student loan balance. If your student loans are in deferment or forbearance, most lenders still need to factor in a payment amount. Each loan program handles this differently, which is why it is important to review your specific situation instead of guessing.

2. Different mortgage programs treat student debt differently

This is where many buyers get surprised. Not all loans calculate student loan payments the same way. Some programs use your actual monthly payment, including low income-driven repayment amounts. Others use a percentage of your total loan balance.

These differences can change your buying power significantly. This is also why online mortgage calculators can feel inaccurate. They cannot account for the specific rules of each loan program.

3. You may still qualify for down payment assistance or first-time buyer programs

Student loans do not disqualify you from assistance programs. Many of these programs are designed for buyers who are managing education debt while trying to build long term financial stability. Depending on your income, your location, and the type of home you want, you may qualify for programs that reduce your upfront costs or offer more flexible financing. It is always worth exploring these options early. A fifteen-minute conversation can help you see what is available and how to put yourself in the strongest position.

The bottom line

Many buyers think they are years away from owning a home because of student loans. Once we look at their full financial picture, they often discover they are much closer than they thought. Your student loans are only one piece of the puzzle. What matters most is your monthly obligations, the structure of your loans, and the loan program that fits your situation. If you are wondering whether you can buy a home while carrying student loans, let’s talk. A quick review of your numbers can give you clarity and a real plan forward. You do not have to wait for your student loans to disappear. You might be far closer to homeownership than you think.

This is not a commitment to lend. All loans subject to underwriting approval. Certain restrictions apply. All borrowers must meet minimum credit score, loan-to-value, debt-to-income, and other requirements to qualify for any mortgage program.