Quick answer
Student loans don’t stop you from buying a house, but the payment usually counts in your debt-to-income ratio, even if your loans are deferred. How it’s figured depends on the program. If your credit report shows a payment, lenders may generally use it. If it shows zero, FHA and conventional loans have their own rules. Past-due federal student loans have to be resolved first on FHA loans.
Rules on this page were checked on against the Fannie Mae Selling Guide and HUD guidance. Program terms are subject to agency and lender guidelines and may change, and individual lenders can set stricter rules.
How student loans affect what you can borrow
Transcript: How can student loans impact your ability to borrow? If you are in full repayment and it is time for those loans to become due, that payment is going to impact your debt-to-income ratio, one of the factors that we look at in buying a home. However, depending on you, we may be able to use less of the payment in our calculations. If we are able to do that, then that student loan actually has little to minimal impact on the qualifying process. I'd love to be able to go over more specifics with you. Give us a call. That way when you do buy, you buy with confidence, you buy with Valor.
Whether a lower payment can be used depends on the program, your loan documents and your lender.
How do lenders count a student loan payment?
| Your situation | Conventional (Fannie Mae) | FHA |
|---|---|---|
| A payment above zero is reported | May use the reported payment, or the one on your latest statement if the report is wrong | Uses the reported or documented payment |
| Income-driven plan at a documented $0 | May qualify with the $0 payment, with documentation | Uses 0.5% of the balance |
| Deferred or in forbearance | 1% of the balance or a fully amortizing payment | Uses 0.5% of the balance if the reported payment is zero |
Program terms and eligibility are subject to agency and lender guidelines and may change.
VA and USDA have their own calculations, so ask about those programs directly. As the table shows, a lender may be able to use less of the payment, as Christopher says in the video. In some cases, student loans have little effect on qualifying.
Does the balance matter, or only the payment?
Your debt-to-income ratio looks at payments, not total balances. But as the table shows, the balance can set the number when no payment is reported. On a large deferred balance, that calculation could limit your price range more than you expect.
What if you missed student loan payments?
Missed payments can do real damage to your credit. On The Hub, Christopher described a friend whose score fell from the 700s to about 560 after moving and missing student loan notices. Hear it from 8:48 in the episode. That is one person’s situation, but it shows why your mailing address on those loans matters.
Delinquent federal debt can also block a loan. FHA, VA and USDA loans can’t close with it until you bring it current or enter an approved repayment plan.
What should you do before applying?
- Log in to your loan servicer and confirm your address and status.
- Download your latest statement showing the payment and balance.
- Don’t pay off or consolidate a loan just to qualify until you have asked a loan officer. See whether paying off debt helps.
Student loan FAQ
Do deferred student loans count against me?
Generally, yes. FHA and conventional loans both count them, using a calculation when no payment is reported. The result depends on your balance and your program.
Should I pay off my student loans before buying?
Not necessarily. Your cash may be needed for your down payment and closing costs, and a payoff may not help as much as you expect. Ask a loan officer to run both versions.
What if my loans were forgiven?
FHA allows a loan to be left out when written documentation shows the balance was forgiven, canceled, discharged or paid in full. Keep those records.
Where these rules come from
| Rule or figure | Source | As of |
|---|---|---|
| Conventional student loan payment rules | Fannie Mae Selling Guide B3-6-05 | Nov 5, 2026 |
| FHA student loan payment rules | HUD FHA Resource Center, student loan payments | Nov 5, 2026 |
| Delinquent federal debt | HUD Handbook 4000.1 | Nov 5, 2026 |
Related answers and guides
- What credit score do you need to buy a house?
- Should you pay off debt before applying?
- Do you need two years of work history?
- More answers on credit and qualifying.
- About Christopher Armantrout.
Call me at (615) 671-9178. That’s the fastest way to get a straight answer on what you’d qualify for and how your student loans would be counted.
If it’s after hours, grab a time on my calendar. Pick a slot that works and I’ll call you then.
If your life is too chaotic for a phone call right now — I understand — start an application and I’ll review it and reach out with a plan.
Valor Mortgage, LLC · Christopher Armantrout, Mortgage Loan Originator, NMLS #1210804 · Valor Mortgage, LLC is powered by Encore Lending Group, LLC, NMLS #1249911 · Licensed in Tennessee · Equal Housing Opportunity
724 S Main St, Springfield, TN 37172 · (615) 671-9178 · christopher@valor.mortgage · NMLS Consumer Access
The dollar figures on this page are illustrative examples for general information only and are not an offer, a rate quote, or a commitment to lend. Actual interest rates and APRs vary based on loan program, borrower qualifications, property, market conditions and other factors. Program fees, limits and terms are set by the agencies named above and change without notice; all loans are subject to credit approval, income verification and property appraisal. Not all applicants will qualify.