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How do lenders treat student loan debt when calculating what I can borrow?

Answer

Student loans hit your back-end DTI, and how lenders count them matters a lot. If you're on an income-driven repayment plan with a low or $0 monthly payment, some loan programs use that actual payment while others impute a percentage of the balance (often around 0.5% to 1%) or require a fully amortized figure. That difference can swing your approval significantly. FHA and conventional loans have their own rules, so ask each lender how they'll treat your specific plan. Deferred loans usually still count. If student debt is squeezing your ratio, paying down balances or documenting a lower IDR payment can help. Estimate the impact at wealthserene.com/tools/home-affordability and confirm the exact treatment with your loan officer.

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