Maybe—but it depends on the loan program and how your student loan payment is documented.

For most mortgage programs, lenders must include a monthly payment for your student loans when calculating your debt-to-income (DTI) ratio. The amount used isn’t always the payment you’re currently making.

For example, if you’re on an income-driven repayment (IDR) plan, your required payment may be very low—or even $0 per month. Some loan programs allow the lender to use that documented payment, while others require a different calculation based on the outstanding loan balance.

The guidelines also vary between Conventional, FHA, VA, and USDA loans, and they occasionally change. That’s why it’s important not to assume your current payment is automatically what the lender will use for qualification.

The good news is that we review your student loan documentation before issuing your preapproval so there are no surprises later in the loan process. We’ll determine which guideline applies to your situation and explain exactly how your student loan payment affects the amount you qualify to borrow.