Student loans don't disqualify you from getting a mortgage, but how your lender calculates your qualifying payment can vary significantly by loan program. Comparing programs like Fannie Mae, FHA, and VA loans, and getting pre-approved early, can make the difference between approval and denial.
June 23, 2026
About 42.8 million Americans carry student debt, and the average monthly federal student loan balance is nearly $400. This recurring expense makes saving for a home difficult, helping explain why 32% of current student loan borrowers have delayed purchasing a home—and why the average first-time buyer is now 40, a record high.
So, can you get a mortgage if you have student loans? Let’s break down what matters so you can understand how student loans affect your mortgage eligibility and options.
Yes, it’s possible to have student loans and a mortgage approval. Student debt won’t disqualify you, but it affects how much home you can afford and which loan programs work best for you.
Many borrowers wrongly believe that mortgage lenders heavily weigh remaining student loan balances in loan approval decisions. “This myth can make you spend two or three years waiting for nothing,” says Cody Schuiteboer, President & CEO of Best Interest Financial. “What’s crucial here is the qualifying payment, which may be entirely different from the payment shown in the borrower's credit report.”
For example, Schuiteboer had an applicant with $90,000 in student loan debt who had assumed homeownership was out of reach, but their qualifying loan payment ranged from $0 to $450, depending on the loan program they chose.
Your qualifying payment is the monthly student loan amount your mortgage lender uses to calculate your debt-to-income (DTI) ratio. Your DTI is expressed as a percentage and shows how much of your gross monthly income goes to debt payments. Lenders use it to decide whether you can comfortably handle the mortgage bill.
Your qualifying payment can differ from what appears on your credit report because each mortgage program has its own rules, and the lender’s calculation takes precedence over what’s shown on the credit report.
Yes, and the difference can decide whether you get approved or denied. Most lenders use 36% to around 45% as a starting benchmark for the back-end DTI, though there’s sometimes flexibility if you have strong credit or savings.
One of Schuiteboer’s clients was turned down for an FHA loan because his DTI was 47%, but was approved for a Fannie Mae conventional loan after the program determined his DTI to be 39%.
The borrower’s income was the same in both applications. The difference came down to Fannie Mae’s willingness to use a $0 IDR payment, which FHA wouldn’t accept.
If you’re in deferment or forbearance or on an income-driven repayment (IDR) plan, the qualifying payment used in your DTI will depend on the mortgage program. Fannie Mae programs, for example, may count $0 in student loan payments toward your DTI, but most other programs calculate the payment as a percentage of your balance.
Schuiteboer says lenders will want to see the following documents to ensure they use accurate data:
FHA loans tend to be the default for many first-time buyers, but the best fit depends on your repayment plan, credit, and balance. Here’s how Schuiteboer says major programs treat student loan payments.
Loan Program | How It Counts Your Student Loan Payment | Notes |
Fannie Mae Conventional | Uses your actual IDR payment, even when that payment is $0. | The most generous treatment available for borrowers on IDR. |
Freddie Mac Conventional | Uses your actual IDR payment, but substitutes 0.5% of the balance if that payment is $0. | The next most generous treatment for IDR borrowers. |
FHA | Counts 0.5% of the balance (down from 1% last year) when the credit report shows $0. | Potentially a great option for credit scores in the 580-660 range. |
VA | Uses your actual IDR payment or 5% of the balance per month. | The most flexible program. Disregards deferred loans that won’t enter repayment within 12 months of closing. |
USDA | Counts 0.5% of the balance for deferments (rules recently updated). | The strictest treatment of student loan debt |
There are plenty of steps you can take to increase your chances of being approved for a mortgage. One of the most overlooked strategies is to speak with a mortgage professional early, rather than waiting until you think you are ‘ready,’ says Bill Egan, senior mortgage loan officer and co-founder of Babcock Mortgage.
He sees some buyers qualify sooner by switching to an IDR plan, paying off small debts to lower their DTI, using down payment assistance, adding a co-borrower, or correcting errors on their credit reports.
Another underused move is to explore state housing programs for first-time homebuyers. “Nearly every state offers support for student loan borrowers, such as Ohio’s 'Grants for Grads,' which helps cover down payments and closing costs,” says Schuiteboer. First-time homebuyers should spend some time comparing mortgage lenders to see who can get them the best terms.
Can you get a mortgage with student loans? It’s possible, but you may need to adjust your homebuying strategy depending on your qualifying payment, mortgage program, and available student loan documentation.
“Don't rely solely on your credit report or general assumptions about student loan debts, and get pre-approved before you decide on buying,” Schuiteboer advises. He stresses getting pre-approved first because rules vary state to state and program to program, and not every loan officer is up to date on the latest student loan underwriting criteria.
The more you understand about how your loans are viewed, the better positioned you'll be to find a program that works in your favor.
Lorraine Roberte is a trusted debt and mortgage expert for Besmoney.com. As the CEO and Founder of Crafty Writing, she specializes in personal finance and insurance content. She has written for leading publications like AAA, GoodRx, Investopedia, PNC Bank, CNN Underscored, Bankrate, and many more. She does the hard work of breaking down complex financial topics like loans, mortgages, debt, and insurance coverage to help readers make confident decisions.
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