Can You Get a Mortgage with Student Loan Debt?

If you’re carrying student loan debt and dreaming of buying a home, you’re not alone—and you’re not out of luck. At Rapid Home Loan, one of the most common questions we hear is:
“Can I still get a mortgage if I have student loans?”

The short answer? Yes, you can.
The long answer? It depends on a few key factors. Let’s break it down.

Student Loan Debt Doesn’t Automatically Disqualify You

Having student loans won’t automatically prevent you from qualifying for a mortgage. What lenders care about most is not that you have student loans, but how you’re managing them.

Lenders look at several key factors when reviewing your mortgage application:

Your credit score
Your debt-to-income ratio (DTI)
Your income
Your employment history
Your savings or down payment

If these are strong—even with student loan debt—you may very well be mortgage-ready.

What Is Debt-to-Income Ratio (DTI) and Why Does It Matter?

Your debt-to-income ratio is the percentage of your gross monthly income that goes toward paying debt, including student loans, credit cards, car loans, and more.

For example, if you earn $5,000 a month and spend $1,500 on debt payments, your DTI is 30%.

Most lenders prefer to see a DTI below 43%, though some loan programs (like FHA) may allow higher ratios with compensating factors. The lower your DTI, the better your chances of approval.

How Student Loans Are Calculated in Your DTI

Even if your student loans are in deferment or forbearance, lenders may still include a payment amount when calculating your DTI. Depending on the loan program, they may use:

The actual monthly payment
0.5% or 1% of the total loan balance (if no payment is showing)

At Rapid Home Loan, we help clients understand how their student loans will be factored in and which loan program best fits their situation.

Mortgage Options for Borrowers with Student Loan Debt

Good news: There are several mortgage options available, even if you’re juggling student loan payments:

✅ Conventional Loans

May require a lower DTI
Typically need a higher credit score
PMI required if you put less than 20% down

✅ FHA Loans

More flexible on credit and DTI
Lower down payment (as little as 3.5%)
Often a good fit for first-time buyers

✅ VA Loans

Available for eligible veterans and active-duty service members
No down payment required
No PMI

Tips for Getting Approved With Student Loan Debt

Here are some steps to improve your chances of getting approved:

Keep Your Credit Score Strong
Make payments on time and keep credit balances low.
Lower Your DTI
Pay down other debts if possible, or increase your income.
Consider Income-Driven Repayment Plans
Lower student loan payments can help reduce your DTI.
Save for a Down Payment
A larger down payment can offset other risk factors.
Get Pre-Approved Early
A pre-approval from Rapid Home Loan gives you a clear picture of your buying power.

Don’t Let Student Loans Stop You

Owning a home is still possible—even with student loan debt. Many of our clients at Rapid Home Loan have successfully bought homes while paying off their education. With the right strategy and guidance, you can too.