Do Student Loans Affect Your Mortgage? What Every Borrower Needs to Know for 2026

Key takeaways

• Student loans won’t stop you from getting a mortgage, but they affect how lenders view your financial health
• Debt-to-income ratio (DTI) plays a major role in mortgage approval
• Income-driven repayment plans can help lower your DTI, improving your odds

If you’ve got student loans and want to buy a house, you’re not alone. Millions of borrowers ask the same question: Will my student debt ruin my chances of getting a mortgage? The truth is, student loans don’t automatically disqualify you, but they do affect how much you can borrow and the rates you’re offered.

This post breaks down how lenders view your student debt, how to keep your debt-to-income ratio healthy, and ways to prepare before applying for a mortgage.

How do student loans affect your mortgage application?

When lenders review your mortgage application, they care most about your ability to repay. Your student loans become part of your monthly debt obligations, which affects two things:

1. Your credit score: Making consistent, on-time student loan payments helps your score. Missed or late payments hurt it.
2. Your debt-to-income (DTI) ratio: This compares your total monthly debts to your gross monthly income. A high DTI (usually above 43 %) can make it harder to qualify for a mortgage.

A key insight: lenders often care less about the total amount of your student loans and more about the monthly payment amount and how many other debts you have.

TuitionHero Tip

Check your DTI before applying for a mortgage. You can calculate it by dividing your total monthly debt payments by your gross monthly income, then multiplying by 100.

Can you get a mortgage if you have student loans?

Absolutely. Having student loans doesn’t mean you can’t qualify for a mortgage. What matters is how you manage your debt.

Lenders look for:

• A solid payment history on all credit accounts
• A reasonable DTI ratio
• Stable employment and consistent income
• Cash reserves (savings for a down payment or emergencies)

If you meet those standards, your student debt alone won’t block your path.

TuitionHero Tip

Consider reducing your loan payments by enrolling in an income-driven repayment (IDR) plan before applying for a mortgage. Lower payments can improve your DTI instantly.

Compare private student loans now

TuitionHero simplifies your student loan decision, with multiple top loans side-by-side.

[@portabletext/react] Unknown block type "component", specify a component for it in the `components.types` prop

[@portabletext/react] Unknown block type "component", specify a component for it in the `components.types` prop

Compare Rates

What mortgage programs are best for borrowers with student loans?

If you’re carrying student debt, these programs are worth exploring:

Important note: Fannie Mae just eliminated its hard 620 credit score minimum, effective November 16, 2025, though many lenders may still maintain their own 620+ requirements as overlays

Each lender calculates student loan payments differently. Some use the actual payment listed on your credit report, while others apply a percentage of your loan balance (usually 0.5–1%) if your payment is unclear.

TuitionHero Tip

Ask your mortgage lender how they calculate student loan payments for DTI. Knowing that ahead of time gives you a plan.

How can you improve your chances of getting approved?

Here are a few ways to strengthen your mortgage application even with student loans:

• Pay down other debt first: Reducing credit card balances lowers your DTI.
• Avoid new loans: Don’t add car or personal loans before applying.
• Improve your credit score: A few extra points can mean a lower interest rate.
• Save for a bigger down payment: It reduces your loan amount and boosts lender confidence.
• Refinance or adjust your student loans: If you can lower your monthly student loan payment via refinancing or by switching to a lower-payment federal plan, your DTI improves.

TuitionHero Tip

While you’re planning for a homebuying timeline, visit TuitionHero to explore tools and checklists for managing your debt, saving for a down payment, and budgeting for homeownership.

How does student loan forgiveness affect your mortgage eligibility?

Changes in student-loan forgiveness policy can also affect your mortgage chances.

If you are eligible for federal student-loan forgiveness and can document that your required payment is eliminated (or you are on a non-payment plan that is officially recognized), then your monthly obligations may drop, lowering your DTI and boosting borrowing power.

However, forgiveness doesn’t automatically translate into mortgage approval.

If the loan remains active and your credit report still shows a payment obligation (or uses a placeholder payment), the lender may still count a monthly obligation. It’s critical to document the forgiveness or $0 payment status and discuss it with your lender.

TuitionHero Tip

Collect service records, loan servicer letters, or Program Administrator documentation showing the payment elimination and share it with your mortgage officer.

Why trust TuitionHero

At TuitionHero, we help you find the best private student loans by comparing top lenders and breaking down eligibility, interest rates, and repayment options. Whether you need additional funding beyond federal aid or a loan without a cosigner, we simplify the process. We also provide expert insights on refinancing, FAFSA assistance, scholarships, and student credit cards to support your financial success.

Frequently asked questions (FAQ)

Do student loans count as debt for mortgage approval?

Yes. Lenders include your student loan payment in your DTI ratio when assessing how much you can afford.

Can I buy a house while my student loans are in deferment?

Yes, but lenders may still include an estimated payment in your DTI, even if you aren’t actively paying.

Do income-driven repayment plans help with mortgage approval?

They can. Lower payments reduce your DTI, improving your approval odds.

Will refinancing my student loans help me qualify?

Potentially. If refinancing lowers your monthly payment, it can make your DTI more favorable. But consider what you may lose (e.g., federal loan protections).

What credit score do I need for a mortgage if I have student loans?

Most lenders prefer 620 or higher, but FHA loans may allow scores as low as ~580 with a larger down payment.

Final thoughts

Student loans don’t have to delay your dream of homeownership. The key is balance: keeping your debt manageable, building your credit, and planning smartly. Whether you’re months away from applying or just starting to save, understanding how lenders view your student loans helps you make confident financial moves.

With the right plan and the right resources, you can manage your student debt and still get approved for a mortgage. TuitionHero is here to guide you every step of the way.

Source

• Can Student Loan Debt Affect Getting A Mortgage? | Chase
• Does Student Loan Debt Mean I Can't Get a Mortgage?
• Does a Student Loan Affect Your Mortgage?