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Is It Hard to Buy a Home With Student Loan Debt?

Published on Sep 09, 2025

Hey folks! This is Eliu from Home Right Lending.

Welcome to another Q&A session where I answer questions from you all on the internet.

Today's question is:

"Is It Hard to Buy a Home With Student Loan Debt?"

Answer from Eliu

A lot of recent graduates in Everett share the same thought: “I’ve got $100,000 in student loans, there’s no way I can buy a house anytime soon.” It’s a common belief, but it’s not the full story. Many assume they need years of work experience, a six-figure salary, and spotless finances before homeownership is even possible. The truth is, student loans don’t automatically lock you out of the housing market.

At Home Right Lending, we hear this concern all the time from young professionals. The fear of debt can make people feel like their dream of buying a home is years away. But the lending world doesn’t see it that way. In fact, the rules often work in your favor.

How Student Loans Are Counted in Mortgage Applications

Here’s what really happens when lenders look at your application. Student loans often start in deferment, meaning you’re not actively making payments right away. But banks don’t just ignore those loans—they’ll typically calculate a placeholder monthly payment to include in your debt-to-income ratio.

This placeholder is usually set at 0.50% of your total student loan balance. So if you owe $100,000 in student loans, lenders may estimate a $500 monthly obligation. In many cases, this calculated payment is lower than what your eventual real monthly payment will be once repayment starts. That calculation can actually make it easier to qualify than you might expect.

Using Your Education and Offer Letter as Employment History

Another big advantage for graduates in Everett is how lenders treat your education. If you’ve just finished school and landed a job offer, your degree plus offer letter can count as work history. That means you don’t need years of pay stubs to prove income. Your education is considered a legitimate part of your employment timeline.

For example, if you just graduated from the University of Washington and received a job offer in Everett, a lender may accept that as enough proof of income stability to qualify you for a mortgage. This flexibility often surprises people who assume they need years of career history before they can even think about buying a home.

Why Starting the Process Early Matters

Waiting until all your student loan dust settles can actually put you behind the curve. Housing markets move fast, and Everett’s home prices are still more affordable than in Seattle. By starting the process early, you may find you can secure a home before prices climb further—or before interest rates adjust.

In many cases, young buyers with student debt are approved sooner than they ever imagined. They lock in a house, start building equity, and leave renting behind, all while still managing their student loan payments.

Don’t Let Student Loans Hold You Back

The key message here is simple: having student loans does not disqualify you from becoming a homeowner. Lenders account for them in specific, predictable ways, and many borrowers qualify for mortgages while carrying significant student loan balances.

If you’re in Everett and wondering whether you can buy a home even with student debt, the answer is yes—you can. And at Home Right Lending, we’re here to walk you through the process, explain your options in plain language, and help you get closer to your dream of homeownership.

Ready to see what you qualify for? Call us today, and let’s talk about how we can help you buy a home in Everett, even with student loans on your plate.

Short Summary

Student loans don’t block homeownership in Everett. With offer letters, deferments, and smart planning, you can qualify for a mortgage sooner than you think.

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