Student Loan Repayments & Home Loans: What You Need to Know

As student loan repayments have resumed over the past several months, many borrowers have one very important question on their minds: “Will this impact my ability to buy a home?” We are here to provide clarity, support, and smart strategies to help you navigate this big financial shift with confidence.

For over three years, millions of Americans benefited from a federal student loan payment pause. Now that student loan repayments have returned,  budgets are tightening. For prospective homebuyers, this can have a direct impact on your homeownership dreams. Your student loan debt now plays a more visible role in your debt-to-income (DTI) ratio, which lenders use to determine how much home you can afford. Additionally, missed payments can lower your credit score (another critical factor in the mortgage approval process).

How Student Loan Repayment Can Affect the Mortgage Process

At GoPrime, we look at the full picture when reviewing applications, but these are some key areas where student loans can influence your home-buying journey:

• Debt-to-Income Ratio (DTI): Student loan payments increase your monthly financial obligations, which can affect how much home you qualify for.
• Credit Score Impact: If you’re struggling to keep up with payments, your credit score could take a hit. This could limit the loan programs and interest rates available to you.
• Loan Type Eligibility: Higher DTI or lower credit scores might push borrowers toward FHA or other government-backed loan options, which come with their own requirements.

So What Can You Do?

While these financial shifts may feel overwhelming, you still have options and we’re here to help you explore them:

1. Get Ahead of Your Payments

If you’re able, stay current with your student loan payments. On-time payments not only protect your credit score but also demonstrate financial responsibility to mortgage lenders.

2. Explore Income-Based Repayment Plans

Federal programs like the SAVE plan may reduce your monthly student loan payments based on your income and family size. Lower payments could lower your DTI and boost your mortgage eligibility.

3. Get Pre-Approved with a Trusted Lender

Before house hunting, talk to a mortgage loan officer. At GoPrime, our loan officers are ready to sit down with you to provide a clearer picture of what you can afford—and how your student loans factor into that equation.

4. Ask About Flexible Loan Options

Our team is experienced in working with buyers who carry student debt. We can help you explore programs that align with your unique financial needs.

You’re Not Alone—We’re Here to Help

We understand that juggling student loans and saving for a home can be tough—but you don’t have to do it alone. At GoPrime, we’re committed to empowering you with the tools, guidance, and mortgage options to step into homeownership with peace of mind.

Have questions? Let’s talk. Our mortgage loan officers are just a call or click away.