Will my debt affect my ability to get conventional financing

[Nick Montelli]

I'm very new to BP, and beginning to learn all I can about real estate investing. I'm very anxious to start working on finding my first deal, but I have a few questions about my debt I'm hoping someone can answer for me.

My wife and I both have student loan debt, in total about 60k. Is this going to affect our ability to get conventional financing? Would it be better to pay it off first? Just want to know what to focus on for the time being.

Also, I have heard it is possible to essentially roll a student loan into the financing of a house, by financing a higher amount and paying off the student loan with the difference. Is this true? Or is it only in the case of a refinance?

Thanks

[Terry Lao]

@Nick Montelli

Student debt will affect the back end ratio. It is not the loan amount, but the monthly payment. I'm thinking your monthly student loan is about $300. The ratios for 20% down, is 33/38. Meaning the housing payment (P&I) should not be greater than 33% of you and wife gross monthly income. The back end is housing payment plus visa, auto, student, monthly payment. That should not exceed 38%. 

Terry