When you first took out your school loan, you did it to open more opportunities. Unfortunately, having a significant amount of school debt can challenge those opportunities. If you have a considerable amount of school debt and are left wondering how you can still qualify for a home loan, this article is for you!

The insights we’re about to share with you will help you get a better idea of how to manage your school loan as well as show how it’s possible to be a homeowner despite having student debt. 

How Student Loans Affect Your Home Loan Approval

The first thing to clarify is that student loans themselves don’t prevent you from getting a home loan. However, the debt of student loans can affect your debt-to-income ratio, and a poor DTI can prevent mortgage approval.

So if your monthly student loan payments are high, but you have no other debt, and your income is fair, your chances of getting approved for a home loan are favorable. On the other hand, if your student loan payments are only part of several other monthly debts, then getting approval may more difficult. 

Here are other factors, besides student loans, that also affect your mortgage approval:

Credit Score:

Your credit score not only determines whether you qualify for a loan, but it also determines the interest rate. The excellent news is government-backed FHA loans have more flexible qualifying terms, and you may be able to get this loan with a credit score as low as 500.


If your downpayment is sizable --meaning 20% or more --then your student loan debt is less of a determining factor. 


We’ve talked about one of the concepts of DTI --debt. But income is also a critical factor, and that may counteract some of your student debt. In other words, school loan debt from graduate school doesn’t weigh as heavily thanks to your ability to earn more income thanks to your graduate degree. 

How To Qualify for a Mortgage with Student Loan Debt

Has your student loan disqualified you from getting a loan? Not to worry! Qualifying for a mortgage is just a few payments away - that is, a few extra payments toward your student loan. 

Minimizing spending in areas like entertainment or taking on a side hustle are ways that you can gather the extra funds to pay down the debt quickly. Plus, since there’s no penalty to paying off your loan early, the only thing you have to gain is better credit and a better DTI!

Don’t let student loans stop you from owning a home! Qualifying is closer than you realize. In fact, you may already be there! Call Legacy Home Loans to find out which mortgage loans your qualify for. 

Brought to you by Legacy Home Loans. Legacy's goal is to provide home loans to clients while providing them with the lowest interest rates and closing costs possible. Furthermore, they pledge to help borrowers overcome roadblocks that can arise while securing a loan. 

To learn more, visit: mylegacylender.com

Posted by Parks Real Estate on


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