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Let’s be real. Student loans are part of the story for a lot of us. And if you’ve been wondering whether that debt automatically puts homeownership out of reach, you’re definitely not alone.
The truth is, it doesn’t. Not even close.
A recent study found that 72% of people with student loans believe their debt will delay or prevent them from buying a home. And yet, every year, thousands of first-time buyers with student debt do qualify for a mortgage and take that exciting step into homeownership.
So if you’ve been thinking, “Maybe I should wait until I pay off my loans,” or “There’s no way I’d get approved right now,” it’s time to take a breath and rethink that. You might be a lot closer to buying your first home than you think.
Can You Buy a Home If You Have Student Loans?
In short? Yes. You absolutely can.
According to the National Association of Realtors (NAR), 32% of first-time homebuyers carry student loan debt, and the median balance is around $30,000. That means nearly one-third of new buyers are purchasing homes while still repaying their education, and they aren’t letting that hold them back.
As Yahoo Finance puts it:
“Student loans don’t have to get in your way when it comes to becoming a homeowner. With the right approach and an understanding of how debt impacts your home-buying options, buying a house when you have student loans is possible.”
How Lenders View Student Loan Debt
Student loans aren’t a red flag to lenders. They are just one part of your overall financial picture. What really matters is:
- Your debt-to-income ratio (DTI)
- Your credit score and payment history
- Your income and job stability
- Your savings, down payment, and reserves
According to Chase Bank:
“Student loans usually don’t affect your ability to qualify for a mortgage any differently than other types of debt you have on your credit report, such as credit card debt or auto loans.”
If you’ve been making consistent payments and your finances are otherwise strong, you could be in a better position than you realize.
Why This Matters for First-Time Buyers in the Denver Market
As a Realtor working with first-time homebuyers in the Denver metro area, I see this concern come up all the time. And I’ve walked many clients through the process, from uncertain to under contract and celebrating.
Here’s what you should know:
Home values are still rising in key areas
Even with shifting interest rates, many communities in and around Denver like Aurora, Thornton, and Lakewood are seeing steady appreciation. Buying now, even if it’s a condo or townhome, means you start building equity instead of waiting on the sidelines.
You don’t need 20% down
This is one of the biggest myths out there. Plenty of buyers qualify with as little as 3% to 5% down and still get great mortgage terms. In fact, many people who assume they aren’t ready already have what it takes to buy a home. They just haven’t seen the numbers yet.
Let’s Bring It Home
If you’re carrying student loans, you are not disqualified from buying a home. In fact, you may be closer than you think.
And if you’re serious about becoming a homeowner, even if it feels out of reach, the next step isn’t to wait. It’s to get informed.
Talk to a lender. Learn what you qualify for. Ask questions and build a plan that fits your goals, your budget, and your timeline.
Final Thoughts from Medra
I’ve helped buyers with all kinds of financial stories become homeowners, including many who never thought it was possible. So if student loans are part of your story, let’s talk about it. No pressure. No judgment. Just real information and guidance you can use.
You don’t have to be debt-free to start building your future through real estate. You just need the right support and a plan that works for you.
📩 Curious if you could qualify, even with student loans?
Reach out today and I’ll connect you with the resources you need to explore your options.
Let’s take that first step together.
