How To Get a Home Loan with Student Loans

By Marcie Geffner - Bankrate

It's no secret that student loans can make buying a home a challenge. But what exactly is the problem and how can buyers overcome it?

The problem is that student loans can be included in the buyer's debt-to-income ratio, or DTI.

This ratio is one factor lenders use to decide whether a buyer can afford a mortgage payment.

Generally, mortgage lenders prefer a debt-to-income ratio of 36 percent or less. In some situations, lenders will approve mortgages with higher debt-to-income ratios.

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