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Can I Buy a Home If I Have 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

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Author

Editorial Director, New American Funding

Clare Trapasso is the editorial director at New American Funding. She was previously the Executive News Editor for Realtor.com and a reporter for a Financial Times publication, the New York Daily News, and the Associated Press.