Mortgage Myth Buster: Do Student Loans Automatically Disqualify You? -By Jeb Stewart, Mortgage Loan Officer — Elite Synergy Mortgage

If you’ve been putting off buying a home because of student loans, you’re not alone. Many

potential buyers believe that having student debt automatically disqualifies them from getting a

mortgage. The truth? That’s one of the biggest myths in home financing — and it’s holding too

many people back from becoming homeowners.

The Truth About Student Loans and Mortgages

Having student loans doesn’t automatically mean you can’t qualify for a home loan. Mortgage

lenders look at your overall financial picture, not just whether you have student debt. The

most important factor is your debt-to-income ratio (DTI) — the balance between your monthly

debt payments and your income.

If your DTI is within an acceptable range (typically under 45–50%, depending on the loan

program), you can still qualify for a mortgage — even with student loans.

What If Your Loans Are in Deferment or Income-Based Repayment?

Great news: You still have options.

Most loan programs — including FHA, VA, and Conventional — allow lenders to use your

income-based repayment amount or a calculated percentage of your loan balance to

determine your DTI. That means even if your payments are temporarily reduced or deferred, it

doesn’t automatically take you out of the running for a mortgage.

Strategies to Improve Your Approval Odds

If your student loans are making your DTI a little too high, here are a few ways to strengthen

your application:

● Adjust your repayment plan: Explore income-driven repayment options that lower your

monthly payment.

● Pay down smaller debts: Reducing credit card or auto loan balances can improve your

DTI quickly.

● Work with a knowledgeable loan officer: Every situation is different, and the right

strategy can make a big difference.

The Bottom Line

Student loans don’t have to stand between you and homeownership. With the right planning and

loan program, you can absolutely buy a home while paying off your education debt.

Don’t let myths or fear stop you from exploring your options. The key is understanding your

numbers and working with someone who knows how to make the numbers work for you.

Ready to See What’s Possible?

I’m Jeb Stewart, Mortgage Loan Officer with Elite Synergy Mortgage, and I help homebuyers

across Savannah and surrounding areas find the right path to homeownership — even with

student loans.

Let’s look at your numbers and see how close you are to buying your first home.