Just like any other debt, your student loan will be considered in your debt-to-income (DTI) ratio. The DTI ratio considers your gross monthly income compared to your monthly debts. Ideally, you want your outgoing payments, including the estimate of new home cost, to be at or below 41 percent of your monthly income.

How does student loan debt affect debt-to-income ratio?

Student loan debt may increase your debt-to-income ratio, affecting your ability to qualify for a mortgage or the rate you are able to get. Missing a student loan payment can lower your credit score, but consistently paying on time can bolster it.

Do student loans in deferment affect debt-to-income ratio?

VA Mortgage Guidelines: If the student loan is scheduled to be deferred for at least one year after your mortgage closes, the loan can be excluded from your debt-to-income ratio calculation. ... If the payment on your credit report is higher, the lender factors the higher payment into your debt-to-income ratio.