Yes, you can buy a house with student loans. They don't disqualify you, but they always count in your debt-to-income ratio, even when they're deferred, in forbearance, or on an income-driven plan with a low or zero bill. What changes is which payment the underwriter uses, and that depends on the loan program. FHA, Fannie Mae, Freddie Mac, VA, and USDA each have their own rule, so the same student loans can count very differently on an FHA file than on a conventional one. And with the federal SAVE plan ended in 2026, a lot of payments on credit reports are out of date right now.
Here's how the starting point works, each program's rule with its source, what's changed in federal repayment, and how to document your real payment.
The underwriter begins with the student loan accounts on your three-bureau credit report. For each one, the report usually shows a balance, a status, and a monthly payment. If the reported payment is above zero and the program accepts it, that's generally what goes into your ratio. If the report shows no payment, a zero payment, or a payment that doesn't match your real terms, the underwriter either documents your actual payment or applies the program's calculated payment.
The underwriter also looks for student loans that are on your application, bank statements, or tax returns but missing from the report. They all count.
Every rule below is the agency's own published rule. Our company doesn't add a student loan overlay on top.
HUD says every student loan counts, regardless of payment type or status. The lender uses the payment on the credit report or your actual documented payment when it's above zero. When the reported payment is zero, the lender uses 0.5% of the outstanding balance. If the lender uses a payment lower than what's on the credit report, it needs written documentation from the servicer of the actual payment, status, balance, and terms (HUD 4000.1 II.A.4.b.iv(H); the manual underwriting version is in II.A.5). So on FHA, a documented income-driven payment above zero can be used, but a zero payment can't.
Fannie uses the payment on the credit report, or the payment on your most recent student loan statement if the report is wrong. If the report shows no payment or zero (Fannie Mae Selling Guide B3-6-05):
Fannie also lets a lender leave out a non-mortgage debt, including a student loan, when someone else has been making the payments. That takes the most recent 12 months of canceled checks or bank statements from the person paying, with no late payments.
Freddie uses the payment on the credit report when it's above zero. When the reported payment is zero, it uses 0.5% of the outstanding balance, unless the file documents a different current payment above zero (Freddie Mac Guide 5401.2). That's why a documented zero income-driven payment can work on a Fannie Mae loan and not on a Freddie Mac loan. Both are conventional loans, and I look at both.
VA's rule, in Chapter 4 of the VA Lenders Handbook (VA Lenders Handbook M26-7), works like this:
USDA uses the payment on the credit report or your actual documented payment when it's above zero, and 0.5% of the outstanding balance when it's zero. USDA also spells out that a student loan in your name alone still counts even if someone else pays it, and a loan in a forgiveness program still counts until you're actually released from it (USDA HB-1-3555, Chapter 11, revised Nov 25, 2025).
This is the part that's catching people off guard. According to Federal Student Aid, a court order ended the SAVE plan in March 2026. Servicers began sending notices to SAVE borrowers on July 1, 2026, and are notifying borrowers in groups through the end of 2026. Each borrower gets 90 days from their notice to choose a new plan, then a final 30-day notice. If they don't choose, they're placed in the Standard or Tiered Standard plan, which can mean a higher payment. A new income-driven plan, the Repayment Assistance Plan (RAP), is available starting July 1, 2026, and Federal Student Aid says its monthly payment can't be less than $10 (Federal Student Aid, SAVE plan borrower FAQs).
What that means for your mortgage file:
If your real payment is different from what the report shows, the underwriter may accept:
The documentation has to show the payment due going forward. If your income-driven plan is up for recertification soon, expect a question about it, because the payment could change.
A loan that's actually been forgiven, canceled, or discharged can be left out once the servicer or the Department of Education documents it. FHA says that directly (HUD 4000.1 II.A.4.b.iv(H)). Forgiveness you expect in the future is different. Until it happens, the loan counts under the program's rule. Many people working toward Public Service Loan Forgiveness have low income-driven payments, which is exactly when the program choice matters most.
A Parent PLUS loan is the parent's debt. If you're the parent who borrowed it, it counts in your ratio, even though your child got the education. If you're the student, a Parent PLUS loan in your parent's name stays out of your file. Note that Federal Student Aid lists Parent PLUS loans as not eligible for RAP.
A cosigned private student loan is your debt too. Whether it can be left out depends on the program and on proof that the other person has made the payments. See co-borrowers and cosigners for how cosigned debt works.
It's a math question. If the program uses a percentage of the balance, paying down the balance lowers the qualifying payment. If the program uses a fixed reported payment, a paydown may not change it at all until the servicer re-amortizes the loan, which many don't do automatically. Ask me for the payment the findings will use, and how a paydown would change it, before sending a large check. That money might do more as down payment or reserves. My debt-to-income guide shows how one payment moves the whole ratio.
This example is made up to show how the programs differ.
Taylor, a nurse in Fort Worth, was on SAVE with a zero payment on her credit report. She's now enrolled in IBR, and her servicer statement shows a documented zero payment. On a Fannie Mae loan, her zero income-driven payment can be documented and used. On FHA and Freddie Mac, the zero can't be used, so the underwriter uses 0.5% of her balance. Her brother Jordan, an Air Force veteran, has loans deferred for graduate school until well over a year after his planned closing, with a letter from his servicer showing it. On a VA loan, his deferred loans don't have to count. Same kind of debt, four different answers.
Send me your servicer statements and I'll calculate your student loan payment under FHA, Fannie Mae, Freddie Mac, VA, and USDA side by side, so you can see which program treats them best before you shop. Schedule a call, or when you're ready, start an application.
Links checked Oct 21, 2026.
About the author: McKade Lively, NMLS 2704474, American Pacific Mortgage Corporation dba True North Home Loans, NMLS 1850.
Equal Housing Opportunity.
Last reviewed: Oct 2026