Think Student Loans Are Holding You Back from Buying a Home? Think Again.
Did you know that 72% of people with student loans believe their debt will delay their ability to purchase a home? If you’re among them, you might be wondering:
- Do I need to pay off my student loans completely before I can buy a home?
- Is it even possible to qualify for a mortgage with student loan debt?
These are valid questions—after all, buying your first home is a major milestone. But here’s the good news: you might be closer to achieving homeownership than you think.
Can You Get a Mortgage If You Have Student Loans?
In short, yes—you can still buy a home even if you’re carrying student debt. Yahoo Finance puts it this way:
” . . . student loans don’t have to get in your way when it comes to becoming a homeowner. With the right approach and an understanding of how debt impacts your home-buying options, buying a house when you have student loans is possible.”
And statistics back this up. According to the National Association of Realtors (NAR), 32% of first-time homebuyers have student loan debt. That’s nearly one-third—proof that you’re not alone, and more importantly, that it’s entirely doable.
In fact, the median student loan balance among first-time buyers was around $30,000. As a helpful article from Chase notes:
“It’s important to note that student loans usually don’t affect your ability to qualify for a mortgage any differently than other types of debt you have on your credit report, such as credit card debt and auto loans.”
What Really Matters
The key factors lenders consider include your income, debt-to-income (DTI) ratio, credit history, and overall financial health—not just whether you have student loans. If you have a steady income and your finances are in good shape, you could very well qualify for a mortgage.
So, don’t assume student debt automatically disqualifies you from buying a home.
Bottom Line
Student loans don’t have to put your homeownership dreams on hold. Before you decide to wait, speak with a trusted lender. They can help you understand your options and show you how close you may already be to buying your first home.
Source: Keeping Current Matters
Experienced Chief Operating Officer with a 26 + year demonstrated history of working in the banking industry. Skilled in all aspects of the residential mortgage market . Strong business development professional with a Bachelor of Science (BS) focused in Business Administration and Management, from St. Joseph College. A direct endorsement underwriter and a licensed Mortgage Loan Originator.