Can You Get a Mortgage with Student Loans or Debt?

If you’re carrying student loans or other types of debt, you may be wondering if homeownership is out of reach. At Rapid Home Loan, we hear this question all the time—and we’re here to tell you: Yes, you can get a mortgage, even with student loans or other debt.

But like many things in life, the answer depends on a few important factors. Let’s break it down.

💡 Understanding How Debt Affects Your Mortgage Eligibility

Mortgage lenders don’t expect you to be completely debt-free. In fact, most homebuyers carry some form of debt—whether that’s student loans, car payments, or credit cards. What lenders really care about is how your debt compares to your income, known as your Debt-to-Income (DTI) ratio.

📊 What’s a DTI Ratio—and Why Does It Matter?

Your DTI ratio is the percentage of your monthly gross income that goes toward paying debt. Lenders typically look for a DTI of 43% or lower, though some loan programs allow higher ratios depending on other strengths in your financial profile (like a high credit score or large down payment).

Example:

If you earn $5,000/month before taxes and your monthly debts (student loan + car + credit card) total $1,500, your DTI is 30%—which is usually well within an acceptable range.

✅ Yes, You Can Qualify for a Mortgage—Here’s How

Here are some tips from Rapid Home Loan on how to improve your chances of qualifying, even with existing debt:

Keep Your Payments Current
Late payments on student loans or credit cards can hurt your credit score. Staying current shows lenders you’re responsible with debt.
Lower Your Debt Where Possible
Paying down high-interest debt (like credit cards) can lower your DTI and boost your credit score.
Consider Loan Forgiveness or Income-Driven Repayment Plans
If you’re on an income-based repayment plan for student loans, lenders may use your reduced monthly payment to calculate your DTI—which helps you qualify for more.
Shop Around for the Right Mortgage Program
Some loans—like FHA loans—are more flexible when it comes to credit scores and DTI ratios. At Rapid Home Loan, we’ll help you find the program that fits your unique financial situation.

🏡 Don’t Let Debt Delay Your Homeownership Dreams

Having student loans or debt doesn’t mean you have to wait to buy a home. With the right strategy and a team that understands your goals, homeownership is still within reach.

At Rapid Home Loan, we specialize in helping borrowers navigate these challenges. Whether you’re just starting to explore your options or ready to get pre-approved, we’re here to guide you every step of the way.