How to Get a Mortgage When you Have Student Loan Debt

February 28, 2019

Odds are, if you have a college degree you have student loan debt that comes along with it. In fact, 70% of college students graduate with student loan debt. One-fourth of all American adults are currently paying off student loans.

That may sound intimidating, but have no fear: you can still buy a house if you have student loan debt. Take a deep breath and let that sink in. You can still buy a house if you have student loan debt! 

Find the Right Lender 

Finding the right lender is a great place to start. At Waterstone Mortgage, we’ll work with you to help find a home loan program that fits your unique situation. We not only have the tools to help you finance your home, but we also have the drive and determination to make it work. 


Take Financial Control 

It’s also important to not let your student loan debt discourage you. There are several ways you can take control of your financial situation. 

Make Monthly Payments on Time

First, it’s key that you make your monthly payments on time. This includes student loan payments (obviously), credit card payments, and any other recurring bills you might have. This is another way to prove to lenders that, despite having student loan debt, you’re a trustworthy borrower. 

Save Where you Can

Whether you have student loan debt or not, it’s always important to save your pennies when considering buying a house. Many loan programs require a down payment. The good news is that plenty of mortgages do not require a down payment, or if they do, it’s minimal. For example, our doctor loan program has a low down payment requirement for eligible medical professionals, and your student loan debt may be excluded from your DTI calculation. If you’re looking to purchase a home in a rural area, you might be eligible for a USDA loan, which is backed by the United States Department of Agriculture and has no down payment requirement. Our Wealth Building loan does not require a down payment either, and it helps you build equity in your home faster.

Avoid Adding More Debt

Another way to take control of your finances is by avoiding credit card debt. No, that doesn’t mean you can’t use a credit card! It does, however, mean you should pay your balance completely each month and keep your credit utilization relatively low. Credit utilization is the amount you charge to your card each month, compared to the amount your bank tells you you’re allowed to charge. This shows that you are a lower-risk borrower, as you do not use “borrowed money” to purchase everything you need. Only charge what you can afford to pay each month, so you can avoid adding to the total amount of debt in your name. 


You’ve made an investment in your future by getting an education. Now, let us help you invest in your future with a home. A Waterstone Mortgage loan professional will be able to provide insight on your situation and determine what kind of mortgage you qualify for.

Find a local mortgage expert in your area today for more information.