Videos

Buying a Home with Student Loan Debt

Aspiring homebuyers who feel bogged down by student loan debt may not need to give up on their dreams of homeownership.

Lenders will calculate how much a homebuyer is obligated to pay each month in student loans as part of their debt-to-income ratio. This is how much debt a borrower has compared to how much they earn.

This ratio is one of the things that lenders look at when they figure out how much money a buyer is qualified to borrow.

“If you have a student loan, you may be able to still purchase a home,” said New American Funding Branch Manager Brenda Robinson. She’s based in Inglewood, Calif. “[However,] the issue may be how much of a purchasing power you may have depending on what that debt is.”

Brenda Robinson NMLS # 954742