Texas Lone Star Lending Video
How a $0 Student Loan Payment Affects Getting a Mortgage
Student loan payments can affect mortgage qualifying even when the current payment is $0, deferred, or in forbearance. Different loan programs treat these situations differently, so it’s important to review the details early.
Trouble viewing the video? Watch it on YouTube.
Read the transcript
Just because your student loan payment is zero today doesn't mean the mortgage lender can ignore it.
That's one of the confusing things about student loans and home loan qualifying.
If you're on an income-based repayment plan, and your required payment is zero, some loan programs may allow that zero payment if it's properly documented. But other programs may still require the lender to count a monthly payment, even if your current bill says zero.
Deferments and forbearances can be even more confusing. Since you're not making a payment today, it may feel like the debt shouldn't count. But for most mortgage programs, the lender still has to account for that future obligation. Sometimes that means using a documented payment from the student loan servicer. Other times it means using a formula based on the loan balance.
The big takeaway is this: don't assume the payment on your credit report tells the whole story. If you have student loans, especially with a zero payment, deferment, or forbearance, talk it through early so your lender can look at the right loan program and the right documentation.
And remember - it's always okay to ask. We're here to help you get home.