Bring this
- StudentAid.gov loan list and balances
- Current repayment plan and monthly amount
- Whether loans are deferred, in forbearance, or in repayment
- Any parent PLUS loans you actually pay
The payment we count
Student loans and a mortgage
Most first-time buyers in this branch have them. The file does not die. The payment we have to count has to be honest.
If your credit report already shows a student loan payment, that amount goes into debt-to-income. If the loans are deferred or in forbearance and no payment is listed, FHA, conventional, and VA still require us to count one. We use a documented income-driven payment when you have the letter. When you do not, we impute a payment from the balance under the current guideline for that program.
Income-driven repayment is usable. A screenshot of a dashboard is weak. A servicer letter or a StudentAid.gov download that shows the current amount is strong. Get that PDF before we submit to underwriting — not after a condition comes back.
Do not refinance, consolidate, or empty savings to pay student loans in the middle of a mortgage without calling us. Those moves can lower DTI or they can reset seasoning and leave you short at closing. We will run both versions of the file in one conversation.
Do not do this mid-file
- Refinance student loans into a new note without telling us
- Pay a large lump sum that you then cannot document
- Ignore a deferred balance because “it is not due yet”
- Assume a forbearance means the loan is invisible
Questions
- Will student loans stop the mortgage?
- Almost never by themselves. They change the payment we have to count in debt-to-income. A high balance with no documented payment is the version that gets tight — that is when we need the servicer letter.
- Should I pay them off before I apply?
- Only after we run the file both ways. Paying them off can empty the cash you need at the table. Sequence matters more than the payoff itself.
- Do parent PLUS loans count against me?
- If they are in your name or you are the one paying them, we have to look. If they are solely a parent’s obligation and you are not paying, bring the paperwork so we can leave them off.
Imputed payment formulas change by program and year. We use the guideline in force on your underwrite, not a number from an old blog post.
Keep reading
More first-time guides
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Before you tour
Get ready to buy
What “first-time buyer” means, how debt-to-income works, and what to stop doing 60 days out.
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Paperwork
Documents and where to find them
Paystubs, bank PDFs, tax transcripts, rent history, and how to pull each one without a scavenger hunt.
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The money
Down payment and cash to close
Earnest money, closing costs, seller credits, gifts, and Ohio down payment assistance — one number, not five.
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Income that is not a W-2
Self-employed and 1099 buyers
Two years of returns, add-backs, a current P&L, and why a brand-new LLC does not qualify you overnight.
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Two names
Buying with a partner or parent
Who goes on the loan, who goes on title, occupancy rules, and when a co-signer actually helps.
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The house type
Condos, manufactured, well and septic
Warrantable condos, titled manufactured homes, private well, and septic — what kills a file before the appraisal.
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House hack
Owner-occupied 2–4 units
Live in one unit, rent the others. How FHA and conventional treat rental income on a first purchase.
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Build or buy
New construction vs resale
Builder contracts, rate locks that expire, specs that change, and why a resale file is a different clock.
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The stretch
From offer to keys
Inspections, appraisals, insurance, underwriting conditions, and closing day in this market.
Start here
Run your student loans against a price
Call (740) 314-5324 with a balance and a target payment. We will tell you if the house still fits.