If you’ve ever worried that your student loan debt is the one thing standing between you and owning a home, you’re not alone. A recent survey found that 72% of student loan borrowers believe their debt will delay their ability to buy a home. But here’s the truth: many of those fears may be based more on perception than reality.
Let’s clear up the confusion and give you some good news: buying a house with student loans is possible.
Can You Still Get a Mortgage When Buying a House with Student Loans?
The short answer? Yes, you can.
There’s a common misconception that student loans automatically disqualify you from getting a home loan. But as Yahoo Finance explains:
“. . . 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 there’s data to back it up.
According to the National Association of Realtors (NAR), 32% of first-time homebuyers have student loan debt. That’s nearly one in three!
So, if you’ve been feeling like you need to completely pay off your student loans before even considering homeownership, think again. Many buyers are achieving their goals despite carrying that financial burden.
What Lenders Look for When Buying a House with Student Loans
The presence of student loans alone won’t make or break your ability to get approved for a mortgage. Instead, lenders focus on the bigger picture:
Your income
Your credit score
Your debt-to-income (DTI) ratio
Your employment history
If these factors are strong, your student loans won’t be viewed much differently than any other form of debt, such as credit cards or car loans.
As Chase explains:
“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.”
In other words, you’re not being singled out for having student debt. The key is to make sure your finances are balanced and your payments are manageable in relation to your income.
Real Talk: What’s Considered a Manageable Amount of Student Debt?
According to NAR, the median student loan debt among first-time homebuyers is $30,000. If your debt is in that ballpark, and the rest of your financial profile is solid, homeownership could very well be within reach.
It’s also worth noting that lenders may even offer flexible options based on your specific loan repayment plan. For example, some loan types allow for more favorable DTI calculations for borrowers on income-driven repayment plans.
How To Move Forward with Confidence
Still unsure if buying a house with student loans is realistic for you? Here are a few smart steps to take:
Get Pre-Approved A pre-approval from a lender will give you a clear sense of what you can afford and how your student debt factors into that picture.
Work with a Knowledgeable Loan Officer Not all loans are the same. A seasoned loan officer can walk you through mortgage options that are most compatible with your financial profile.
Don’t Make Assumptions Just because you have student loans doesn’t mean you can’t qualify. Many people are surprised to learn they’re closer to homeownership than they thought.
Improve Other Areas of Your Finances Strengthening your credit score or increasing your income can offset the impact of your student debt and improve your approval odds.
Bottom Line
Student loans don’t have to stand in the way of your homeownership dreams. With the right strategy, a strong financial foundation, and guidance from a trusted mortgage professional, you could be well on your way to buying a house with student loans.
At Best Option Mortgage, we specialize in helping first-time buyers navigate their unique financial situations. Whether you’re ready to start house-hunting or just want to explore your options, we’re here to help you every step of the way.
Let’s see what’s possible for you. Contact Best Option Mortgage today and take the first step toward your new home.
Disclaimer: Best Option Mortgage is a DBA of ML Mortgage Corp. ML Mortgage Corp. is a state-licensed mortgage lender, NMLS ID #362312, licensed by the CA Department of Financial Protection and Innovation under the Finance Lenders Law, License #60DBO69831. For other states, visit www.mlmortgage.net. To verify licenses, visit www.nmlsconsumeraccess.org. All loans are subject to credit approval and acceptable collateral. Additional terms and conditions apply. Programs, rates, terms, and conditions may change without notice. Not all programs are available in all states. There is no guarantee that all borrowers will qualify. Restrictions may apply. This is not a commitment to lend. © 2025 ML Mortgage Corp. All rights reserved.