Can You Get A Mortgage With Student Loans

Q: We want to buy a home, but we’ve got massive student loans. Can we still qualify for a mortgage? Brendan, New Providence, NJ

A: Yes, it is definitely possible to get a mortgage with student loans. The most important factor lenders consider in determining whether you qualify for a mortgage is your Debt-to-Income (DTI) Ratio. Lenders typically require a DTI ratio below 43%, meaning your monthly debt payments (including student loans) should be less than 43% of your gross monthly income. Student loans can limit the amount of money you can borrow to buy a home because they factor into your monthly debt obligations. It’s difficult to know whether you’d qualify for a mortgage without knowing your income as well as the other debts you already have. One strategy to increase the likelihood that you’ll qualify for a mortgage loan is to reduce the other debts you have (i.e. credit cards). Reducing your outstanding debt and/or increasing your income will lower your DTI Ratio. However, there are other factors that influence a lender’s decision whether to lend you money to buy a home like how consistently you pay your existing bills and debts on time. Thanks for your question, Brendan.

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