Buying A Home With Student Loan Debt May 2026

: Showing current balance and payment terms.

Making on-time student loan payments acts as "good credit," helping you build a solid FICO score over time.

: If your monthly payment is not clearly reported, lenders may use a fallback calculation, such as 1% of your total loan balance , to estimate your monthly obligation. Credit Score : buying a home with student loan debt

To improve your chances of approval, consider these strategies recommended by industry professionals at Contour Mortgage and Treadstone Funding : :

If your standard payments are too high, an IDR plan can lower your monthly obligation, which in turn lowers your DTI for mortgage qualification. : Showing current balance and payment terms

DTI is the percentage of your gross monthly income used to pay recurring debts.

: These often have more flexible credit score requirements (as low as 580 with a 3.5% down payment). Credit Score : To improve your chances of

Unlike a basic pre-qualification, a formal pre-approval involves a lender thoroughly assessing your tax returns, pay stubs, and student loan statements to provide a specific loan commitment. :