Can you still get a mortgage – especially in NYC – if you have student loan debt?

This is a question that’s on the minds of many would be first time buyers since A LOT of you are carrying around this kind of debt. 

The short answer is…YES!

Having student loan debt DOES NOT mean a bank won’t lend to you. Instead, your student loan debt is likely to impact how much you can borrow. 

But the total amount of debt isn’t the only thing that’s important. Other factors, including your payment history and your debt to income ratios, are important as well. 

So, what kind of debt to income ratio do you need to have to qualify?

That’s not a one size fits all answer. Each bank has its own standards.

But most of them will consider what’s known as a “front end ratio” and a “back end ratio.” You can learn more about that here: Understanding Debt to Income Ratio for a Mortgage 

Much like coops, banks look at your whole financial picture. They consider your income, your job history, your assets, your credit score, and more. Student loan debt is just one part of that.

So don’t assume your dream of home ownership is out of reach because of student loans. Reach out to an NYC mortgage professional instead to see if you can make it happen!

Need a referral to one? Contact me!