If you have student loan debt and you’re thinking about buying your first home, you’re not alone—and you’re definitely not out of luck. A recent study found that 72% of people with student loans believe their debt will delay their ability to purchase a home. But here’s the truth: you may not need to wait.
Let’s clear up some common misconceptions and look at what really matters when it comes to buying a home with student loans.
Do You Have To Pay Off Student Loans Before Buying a Home?
The short answer: No.
According to Yahoo Finance, student debt doesn’t have to stand in the way of your homeownership dreams:
“Student loans don’t have to get in your way when it comes to becoming a homeowner. With the right approach and an understanding of how debt impacts your home-buying options, buying a house when you have student loans is possible.”
What the Data Says
You’re not alone in this situation. In fact, the National Association of Realtors (NAR) reports that 32% of first-time buyers had student loan debt when they purchased their homes. That means nearly 1 in 3 first-time buyers made it work—even with student loans on their record.
The median student loan debt among those buyers? $30,000.
How Student Loans Impact Your Mortgage Qualification
Many buyers worry that student loans will ruin their chances of qualifying for a mortgage. But lenders look at all types of debt—not just student loans.
As Chase Bank explains:
“Student loans usually don’t affect your ability to qualify for a mortgage any differently than other types of debt you have on your credit report, such as credit card debt and auto loans.”
What really matters to mortgage lenders is:
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Your debt-to-income ratio (DTI)
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Your credit score
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Your income stability
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Your savings and down payment readiness
If your overall finances are in good shape—even with student loan payments—homeownership may still be within reach.
Bottom Line
Don’t let student loan debt convince you that buying a home is out of the question. The key is to talk to a lender who can help you understand your personal finances, assess your options, and determine how close you are to making your homeownership goals a reality.
Ready to see what’s possible for you—even with student loans? Let’s talk.