Student Debt to Income

[William Rushton]

Hi All,

I am planning in buying my first house this summer, I have yet to got pre approved for a mortgage to know my true range of house that I can buy.

The reason I am creating this post is, I was a student first and had an employee mindset, in today's world and 10 years of school to obtain a masters degree, this translates to roughly 110k in student loan debt. Which I am in the process of paying off ideally before 35.

Ultimately my question is, with my debt to income ratio being so one sided, roughly 70k a year to 110k total debt, do I have similar options as any other person looking to buy a home? Am I likely going to have to get more creative about purchasing? I know I won't have truly have answers until talking to a lender but I'm hoping that someone can give me a little peace of mind that given my circumstances I can get into the market starting this year!

Thanks!

[Chris Mason]

If a payment reports on your credit, it'll be treated as no different than any other monthly obligation. $400 per month is $400 per month, does not matter if it's a car loan or student loan.

If no payment appears, then 0.5% to 1% of the student loan balance will be treated as if that were the monthly payment, depending on the loan program.

There's some other nuance,  but that covers 90% of cases.