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.