We provide a comprehensive overview of how to get a mortgage with student loans that you can review. Your situation is somewhat unique because you are currently enrolled in school and it sounds like you will be applying for the mortgage with your spouse several years before you actually start paying your student loans.
In most cases lenders factor in student loan payments if the loans appear on your credit report, even if the loans are deferred and you are not currently required to make any payments. For student loans that are deferred, which applies to you because your payments are deferred until six months after you graduate, the monthly debt payment for the loan is calculated as either 1% of the outstanding loan balance or the full payment amount according to your loan documents. So depending on the calculation method used by the lender, your full loan payment or 1% of your loan balance would be counted as debt and factored into your debt-to-income ratio when you apply for a mortgage, even if your student loans are currently deferred and your required monthly payment is $0.
Please note that the lender calculates your student loan payments based on your outstanding student loan balance when you apply for the mortgage. For example, if you have $15,000 in student loans outstanding and the lender applies the 1% method to determine your student loan payments, the lender would include $150 in monthly student loan payments ($15,000 * 1% = $150) to determine your ability to qualify for a mortgage. You can use our Mortgage Qualification Calculator to determine what size mortgage you can afford based on your monthly gross income and debt expense.
We always recommend that you contact multiple lenders to understand how they would handle your unique situation. You can review lenders in your area by clicking INTEREST RATES We advise you to contact at least four lenders as qualification guidelines vary. Plus, shopping multiple lenders is the best way to save money on your mortgage.