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The Mortgage Firm

News & Insight

Student Loan Debt?

By TMF Marketing

Not a problem! You don't need to be debt-free to purchase your future home; we have plenty of options to cater to your needs.

Let's take a look at how student loan debt might affect your ability to get a mortgage. When qualifying for a mortgage something we as a lender look at is your current debt, including any debt associated with your outstanding student loan balance. Lenders need to know that you have enough money to make your payments after you get your mortgage loan. The more debt you have, the more likely you are to fall behind on your home loan payments.


Understanding Debt-to-Income Ratio

A number we look at when we consider you for a loan is called the debt-to-income (DTI) ratio. Your DTI ratio describes the percentage of your monthly income that goes toward debt. If you have a high DTI ratio, this can affect what you can qualify for.


Qualifying for a Mortgage and Buying a Home with Student Loans

You can still purchase a home with student debt if you have a solid, reliable income and a handle on your payments. Below is a list of products that work in favor of those who have a higher DTI.

FHA Loan Products

These loans are backed by the Federal Housing Administration and typically allow room for a higher Debt-to-income ratio.

VA Loan Products

If you served in the armed forces or National Guard, you may qualify for a VA loan.

Student Loan Refinance

This type of program is designed to lessen the financial burden of student loan payments from homeowners by offering consolidation of an existing mortgage, and student loan debt into one loan; simplifying debt repayment. It also provides the flexibility to pay off high-interest-rate student debt, while potentially refinancing at a lower mortgage interest rate.

Doctor's Home Program

This program allows for a DTI of up to 50% with a payment completed of 1% of the total student loan balance.

*Doctor's Home Program only available in the state of Florida


As you begin your homebuying journey, consider looking into getting preapproved by a mortgage lender that can walk you through all of your options. Preapproval is a great first step for student debt holders to decide on what type of loan can fit their budget. Get pre-approved with The Mortgage Firm today!


DISCLAIMER: Additional terms and conditions may apply. Programs are subject to change without notice and subject to the respective program eligibility guidelines.


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