Can You Buy a House with Student Loan Debt?

by Julie Peebles

This is a question many college-educated people are asking because people are carrying so much debt. Student Loan Hero quotes “Americans owe nearly $1.3 trillion in student loan debt, spread out among about 44 million borrowers.” With this shocking statistic, along with others in their article, it is no wonder why this question is on so many people’s minds.

As you can see, you are not the first to consider buying a home with student loan debt, and you won’t be the last. There are a few things you can do to buy a house with student loans and make your monthly payment cheaper.


If your payments are currently deferred and you are gainfully employed, even if you’re still in school, start making payments regularly.

When student loans are in deferment, lenders calculate 1% of the total as a monthly payment; for $20,000 in student loans, this is a $200 monthly payment that counts against your debt-to-income ratio. However, if you start making payments of $50/month on this loan, we would use $50 as your monthly payment, freeing up $150 of your debt load and making your debt-to-income more reasonable.

Your lender will verify your payment one of two ways.

1. The payment will report to credit and we will be able to see it there or
2. A student loan statement reflecting this payment can be provided by you.


Most student loans allow you to choose how to repay them when you’re getting close to your deferment period expiring; one method they offer is an income-driven repayment plan. People don’t always get the job they were educated for immediately after graduation so this plan can make the burden of student loan debt less painful while you work your way up to the career you want.



Student loans are often taken out as several small loans (one for each semester) throughout our college years. These can usually be refinanced into a single loan with a single payment once you graduate. Not only is this easier to keep track of, but it can result in a lower overall monthly payment depending on which repayment method you choose.


Graduated payments are an option if you need to buy a home quickly after graduation but you are not yet in the career of your choice. With graduated payments, you start out repaying the loan for a minimal amount towards the beginning of the loan with the payments gradually increasing over time. The theory is as you move up the ladder you’ll make more money.


The best part about all of this is, advice is free. If you have an idea about what you want and are uncertain of how to make the dream a reality, call us any time. We’ll be happy to discuss your goals and how to reach them.


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