If you’ve been holding off on buying your first home because of student loan debt, you’re not alone — but you may be waiting unnecessarily. According to the National Association of Realtors (NAR), 32% of first-time homebuyers have student loan debt, and the median balance is around $30,000. That means nearly one in three new homeowners are managing both — and still making their dream of homeownership a reality.

Student Loans Don’t Have to Hold You Back

It’s a common misconception that you need to be completely debt-free before you can buy a home. In reality, lenders look at a variety of factors to determine your eligibility, including your credit score, income stability, and debt-to-income ratio (DTI) — not just whether you have student loans.
If your student loan payments are manageable and your other financial indicators are strong, you could still qualify for a mortgage.

How Lenders View Student Debt

Lenders understand that student loans are a normal part of modern life, especially for younger buyers. What matters most is how you manage that debt. Making consistent, on-time payments can actually help build your credit and show financial responsibility. Some loan programs even take into account income-driven repayment plans, which can make qualifying easier.

Tips for Buying a Home with Student Loans

If you’re ready to explore homeownership but aren’t sure where to start, here are a few key steps:

1. Check Your Credit Score – The higher your score, the better your loan terms. Aim for at least 620, though higher scores open up more options.

2. Know Your Debt-to-Income Ratio (DTI) – Most lenders prefer a DTI of 43% or lower. Paying down smaller debts can make a big difference.

3. Explore Loan Programs – FHA, USDA, and VA loans often have more flexible requirements, making them ideal for first-time buyers.

4. Get Pre-Approved – Talking with a lender early can give you a realistic idea of what you can afford — and make you a stronger buyer when you find the right home.

The Bottom Line

Student loan debt doesn’t have to delay your homeownership dreams. With the right plan, lender, and guidance, you can confidently take the next step toward buying your first home.
If you’re curious about your options or want to know what’s possible for your unique financial situation, reach out to our team today. We’ll connect you with trusted local lenders and walk you through every step of the process.

🏡 Ready to Start Your Journey?

Buying your first home is a big step — but you don’t have to do it alone.
Contact The Shanken Team today to discuss your goals, get connected with a knowledgeable lender, and make your dream of homeownership a reality.