If you’ve got student loan debt, you’re not alone and having student loans doesn't mean you are automatically disqualified.
You can still get a VA loan with student loans. The key is how that debt gets counted in your monthly obligations. Let’s walk through how student loan payments impact your VA loan approval and what to do if your loans are deferred, in forbearance, or on an income-based repayment plan.
The Big Question: What’s Your Monthly Payment?
When qualifying for a VA loan, your lender has to calculate your debt-to-income (DTI) ratio. Student loan payments get added to your monthly debts but how they’re counted depends on your situation.
Here’s How the VA Handles It:
-If you’re actively making payments:
We use the amount shown on your credit report or your most recent student loan statement.
-If your loans are in deferment or forbearance (with less than a year remaining):
We have to calculate a payment, usually it's 5% of the total balance divided by 12.
So a $40,000 student loan = $166/month counted against your DTI.
-If your loans are in deferment or forbearance (with more than a year remaining on deferment):
We can use a payment of $0 since it is deferred more than a year.
What If You’re Just Starting Repayment or in a Grace Period?
If you don’t have a payment yet but repayment is about to start, we’ll usually:
The key is getting ahead of it so you’re not surprised mid-approval.
Student Loans Don’t Disqualify You, They Just Need to Be Documented
I’ve helped tons of buyers with student loans qualify using:
The important thing is understanding what the underwriter needs to see, and showing a consistent, manageable monthly amount.
If student loans have you stressed about buying a home don’t let bad info talk you out of it. Let’s run your numbers and see what’s real.
