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Yes, you can buy a home with student loan debt. Learn how FHA, VA, and conventional loans calculate student loan payments — including $0 income-driven plans.
Quick answer: Yes, you can buy a house in Texas with student loans. Lenders don't disqualify you for having student debt — they count a monthly student loan payment in your debt-to-income ratio. How that payment is calculated depends on the loan program, especially if you're on an income-driven plan, in deferment, or showing a $0 payment. Choosing the right program can make a real difference in how much you qualify for.
How each loan program counts student loans
Loan program | If you have a documented monthly payment above $0 | If your payment shows $0 or loans are deferred |
|---|---|---|
Conventional — Fannie Mae | Uses your actual payment | A documented $0 income-driven payment can be used as $0; otherwise generally 1% of the balance or a calculated payment |
Conventional — Freddie Mac | Uses your actual payment | Uses 0.5% of the outstanding balance |
FHA | Uses your actual payment | Uses 0.5% of the outstanding balance |
VA | Generally a calculated payment of 5% of the balance ÷ 12, unless the documented payment is higher or the lender documents otherwise | Loans deferred at least 12 months beyond closing may be excluded |
These rules are summarized from each program's current guidelines (overview) and can change. Your lender will apply the exact rule for your loan.
Why this matters: an example
Say you owe $60,000 in student loans on an income-driven plan with a documented $0 monthly payment.
- Under Fannie Mae guidelines, your student loan payment may count as $0.
- Under Freddie Mac or FHA guidelines, it counts as $300 per month (0.5% of $60,000).
That $300 difference can change your approved price range. A loan officer who knows these rules will look at which program fits your situation best, rather than running your file one way and stopping there.
Federal student loan changes in 2025–2026
Federal repayment plans have changed significantly, including the end of the SAVE plan and the introduction of new repayment options. If your plan, payment, or status has recently changed:
- Get a current statement or letter from your servicer showing your plan and monthly payment.
- Make sure your credit report reflects the correct payment.
- Tell your loan officer early, so your payment is calculated correctly from the start.
Things that can cause problems
- Defaulted federal student loans generally must be resolved before you can get an FHA or other government-backed loan.
- Late payments on student loans affect your credit score like any other debt.
- Forbearance may be treated differently from deferment, depending on the program.
Ways to improve your position
- Enroll in a repayment plan with a documented payment that fits your budget.
- Pay off smaller debts, like a credit card or car loan, to lower your overall debt-to-income ratio.
- Consider adding a co-borrower's income if appropriate.
- Ask your loan officer to compare conventional, FHA, and VA (if eligible) side by side.
FAQ
Do deferred student loans count against me for a mortgage? Usually, yes. Most programs still count a calculated payment even when loans are deferred. VA may exclude loans deferred at least 12 months past closing.
Can I get a mortgage on an income-driven repayment plan? Yes. Your documented income-driven payment can often be used, and some conventional loans can use a documented $0 payment.
Should I pay off my student loans before buying a house? Not necessarily. Paying down debt can help, but it can also reduce the cash you have for a down payment and reserves. Compare both paths with your loan officer.
Does my student loan balance matter, or just the payment? For debt-to-income purposes, it's usually the payment that counts. But when your payment is $0 or deferred, some programs calculate a payment based on your balance.
Have student loans and wondering what you qualify for? Call or text Mike Tanas at 214-604-5245
This article is general education, not financial, tax or legal advice. Guidelines change and vary by lender. Talk with Mike about your own situation.