Student Loans

Can You Pay Student Loans With A Credit Card – Can You Buy A Home With Student Loan Debt?


Can You Pay Student Loans With A Credit Card – Highest Rated?

Wanting to buy a home, but have student loan debt? There’s a myth going around that it’s incredibly difficult to buy a home with student loan debt and that’s simply not true!

You absolutely can buy a house with student loans. In fact, I help my clients do it all the time.

First, if you feel overwhelmed by student debt, know that you’re not alone. Student loan debt is a huge national crisis at this point. People go to college to get careers and move their life forward, but crippling debt slows down their momentum and can squash their hope!

So, don’t feel embarrassed by student loans. You can still gain wealth through real estate while in college debt.

How exactly will student loans affect your ability to buy a house? Mainly, lenders are going to look at your DTI or Debt-To-Income ratio. The Debt-To-Income is simply your total monthly debt payments divided by your gross (before tax) income.

So, if your income before taxes is $5,000 and your car payment is $300/mo, your credit card is $200/mo, your student loans are $450/mo, and your estimate mortgage payment is $950/mo, your DTI is 38%.

For Conventional loans, lenders normally want your DTI to be below 49%. For FHA, it’s usually capped at 56%.

So, student loans mainly affect your ability to buy a home based on how much debt you’re currently carrying.

The main tricky part about student loans is if you don’t have a minimum required payment on them yet (e.g. payment is deferred, forbearance, or income based repayment). In this case, a lender usually is going to take 1% of your outstanding balance and use that as a monthly minimum payment in your Debt-To-Income ratio. Usually, this isn’t terrible with lower amounts of debt. But, if you have a lot of debt, this might be tricky. For instance, if you have $150,000 in student debt and your credit report doesn’t show a minimum monthly payment, a lender has to use $1,500/mo as a minimum payment on your DTI ratio!

That’s where student loans can stop your home buying right in its tracks. (Note: if you’re in the medical field, lenders can sometimes ignore medical student debt)

For most people, they have minimum payments and they’re fine. If your payments are currently deferred, then you might want to talk with a Mortgage Advisor first and make sure everything is ok to move forward.

Hey, my name is Kyle and I’m a Mortgage Advisor serving Ohio and Tennessee. My goal is to help you get a crystal-clear home loan that helps you win the house you love. If you’re wanting to begin the planning the home buying process, you can reach through any of the ways below:

— Legal —

NMLS# 1701021
Motto Mortgage Alliance
8900 N. Dixie Dr.
Dayton, OH 45414
Equal Housing Opportunity

Thanks for watching the Can You Pay Student Loans With A Credit Card video!

Watch the Can You Pay Student Loans With A Credit Card video on Youtube



  1. NouY Moua
    July 25, 2021 at 2:43 pm

    My student loan was in deferment when we went underwriting and we are 13 days out to closing. I just checked and now thr status is COVID 19 forberance. I am freaking out.. would this get us denied? Do I need to let my loan officer know or wait for him to ask because would he see it on his end? I really hate this! I only have $2,800 left. KYLE PLEASE help give me some advice and answers!

  2. solcocochanel
    July 25, 2021 at 2:43 pm

    Thank you so much !! Very helpful!! I am about ready to buy yet but I am preparing for it in the future !! Your channel is one of the best!!

  3. Marlette Johns
    July 25, 2021 at 2:43 pm

    Thank so much for this advice . I almost gave up on buying a house due to my student loans. I am working now on my credit score and paying my car off. As a previous viewer stated I would like to learn more about the programs for Health care professionals. Also thanks for suggestion YNAB best move I made this year

  4. Anita Adams
    July 25, 2021 at 2:43 pm

    If you have more than the 3.5% deposit saved, is it best to pay off a student loan or to use that money towards a larger deposit?

  5. Chola Chisimba
    July 25, 2021 at 2:43 pm

    This video spoke to me esp from 05:30. I have money saved up for a dp and that the amnt is exactly what I owe on my student loan. Will pay it off and be 100% debt free (car note was paid off three yrs early and I have zero balances on my credit cards) then aggressively embark on saving up for, 'an even better house' a fresh, as you stated. Thank you so much for your transparency! You have a new subbie. 👍🏾

  6. errybody gottachurce
    July 25, 2021 at 2:43 pm

    Dave Ramseys program got me out of debt 🙌🏼

  7. Jean Soo - Learn, Grow & Serve!
    July 25, 2021 at 2:43 pm

    Hi, I really love your videos and how informative it is! Do you know if applying for a FHA or conventional loan while going to graduate school will affect financial aid and scholarships from schools? Thank you!

  8. WinnieTheGirl
    July 25, 2021 at 2:43 pm

    I really appreciate your videos! Could you please make a video about medical/health care professionals and loans that are available to us (considering we have student loans)? Thank you!

  9. kimper0717
    July 25, 2021 at 2:43 pm

    Can you please make a video on how to become a mortgage loan officer? Do you feel that is something that can be done as a side business?

  10. Love and Light
    July 25, 2021 at 2:43 pm

    I totally agree with all of these solutions. I own my home but my student loans have increased substantially. I want to sell next year so I thought just paying off my car and other credit cards to help offset my student loan payment would help. thank you for the information!