Home Sweet Loans

  Student loans can try and damper your plans to buy a house, but they aren’t a reason to give up on your dreams. Yes, mortgage companies look at your total debts and compare them to your monthly income, but you can get approved for a mortgage with student debt with the following steps. The key is understanding what lenders look for and how to make the most of your qualifying factors. Manage your Other Debts If you have other consumer debts, try paying them down or off as quickly as possible. Lenders look at your debt-to-income ratio. This compares your total monthly obligations to your gross monthly income (income before taxes). Depending on the loan type, you are allowed a maximum DTI of 43 - 56%, so no more than 56% of your income can cover your new mortgage payment, student loans, and other outstanding loans. Paying off credit cards or other small loans can free up room in your DTI and allow you to get a mortgage with student debt. Consolidate Federal Loans If you have federal ...