Deacon & Hoover Real Estate Advisors LLC
Alex Deacon, Deacon & Hoover Real Estate Advisors LLCPhone: (412) 613-4435
Email: [email protected]

Mortgage & student loan payments: What homebuyers should know

by Alex Deacon 08/25/2023

It's common for homeowners to have both mortgage and student loan payments simultaneously. But how does student debt affect your chances of getting a mortgage in the first place?

While lenders consider all debt obligations in loan approval, you can still buy a home while paying student loans.

Do mortgage lenders care about student loans?

Lenders consider your current financial obligations, including any outstanding loan balance, in your financial statement. 

Your debt to income ratio, or DTI, measures your ability to make regular loan payments, so if your student loan payments skew your DTI too much, it could be a red flag to lenders.

Can I still get a mortgage?

While mortgage lenders consider your debt-to-income ratio for mortgage approval, you don't have to be completely debt free to get a mortgage. So, you can have student loan debt and still get a mortgage!

Should I pay down my loans before buying a house?

Student loan debt won't keep you from mortgage approval, but it can make it harder to qualify. If you have reliable income and a good payment history, it's not necessary to pay off your existing debt before buying a house.

Just remember to consider the monthly student loan payments and your homeowner costs. Multiple loan payments add up quickly.

So, it’s harder to buy a house as a student loan borrower?

It's not necessarily harder to buy a house as student loan borrowers. 

But regular student loan payments with regular mortgage payments can be expensive, so be careful to stay on top of your payments.

Student loan payment assistance programs may help with federal student loans, such as income-driven repayment plans. So explore all your options if you run into a hardship.

About the Author
Author

Alex Deacon

Why work with The Alex Deacon Team?

More than six decades of combined team experience
Combined sales over 1,100 in 20 years
The average agent works by themselves or is inexperienced
The average agent is in and out of the business in less than 5 years
The average agent according to national statistics sells less than 8 homes a year
Our team concept allows us to do a large volume of business, keeps our finger on the pulse of the market by doing such volume, giving our clients outstanding service because everyone on the team has a certain skill set and experience level and we all work together to give you the best of each of our individual skills.
Unique programs like our Guaranteed home sale or commission free program just as one example.
We can cover a large area being a team verses one agent.
Huge personal data base of past, present and potential clients that we will expose your home.