First-Time Buyer’s Guide: Owning a Home with Student Loans in Texas
Think student debt is holding you back from buying a home? You’re not alone—but the truth might surprise you.
According to a recent study, 72% of people with student loans believe their debt will delay their ability to buy a home. Maybe you're one of them—wondering if you have to wait until those loans are paid off before owning a home in Flower Mound, Southlake, or anywhere in DFW.
The good news? You may not have to wait at all. Here’s what you need to know to move forward with confidence—even while carrying student debt.
Can You Really Buy a House with Student Loans?
Yes, it’s absolutely possible. In fact, many people successfully buy homes while paying down their student loans.
“Student loans don’t have to get in your way when it comes to becoming a homeowner. With the right approach and an understanding of how debt impacts your home-buying options, buying a house when you have student loans is possible.”
— Yahoo Finance
Student loans are just one part of your financial picture. What matters most to lenders is how well you manage your debt overall—and whether your income supports your monthly obligations.
Here’s the kicker: The median student loan debt is around $30,000. That’s a figure many lenders are prepared to work with. So don’t assume that number alone will keep you from qualifying.
How Lenders View Student Loan Debt
1. Your Debt-to-Income Ratio (DTI) is Key
Lenders focus on how much of your income goes toward debt. This is your debt-to-income ratio (DTI). It includes:
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Student loan payments
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Credit card minimums
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Auto loans
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Any other recurring monthly debts
✅ A general rule: Your DTI should be 43% or lower, but some loan programs allow higher ratios with compensating factors.
For example, if your monthly gross income is $6,000 and your total monthly debt payments (including student loans) are $2,400, your DTI is 40%. That’s still within qualifying range for many loan types, including FHA and Conventional.
2. Credit Score & Payment History
Lenders also look at your credit score and whether you’ve consistently made on-time payments.
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Score of 620+ is preferred for most Conventional loans
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FHA loans may go as low as 580 with a stronger DTI
If your student loans are in deferment or on an income-driven repayment plan, that won’t automatically disqualify you. What matters is how they factor into your DTI—and how the rest of your financial profile looks.
5 Ways to Boost Your Buying Power (Even with Student Loans)
Here’s how to make yourself as mortgage-ready as possible:
1. Get Pre-Approved Early
Before you even start home shopping, a pre-approval gives you clarity. It tells you what loan types and price points are realistic—and flags anything you may need to address.
2. Pay Down Smaller Debts First
Even knocking out a few hundred dollars in credit card debt can improve your DTI. Every little bit helps your qualification picture.
3. Use First-Time Buyer Programs
There are many loan programs designed to help people just like you:
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TDHCA (Texas Department of Housing & Community Affairs) offers down payment and closing cost assistance
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Freddie Mac Home Possible allows for flexible income and debt ratios
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Ask your lender about FHA or VA options, which tend to be more forgiving with student debt
4. Consider Co-Buying (If It’s Right for You)
In some situations, buying with a partner or family member can improve your income-to-debt ratio. Just make sure you trust the co-borrower and understand the legal implications.
5. Partner with a Local Expert
At BlueFuse, we help first-time buyers across North Texas navigate student debt with confidence. From pre-approval to closing, we’ll walk you through every option.
Buying in Flower Mound or Southlake with Student Loans
Here’s the good news: DFW suburbs offer options at many price points, especially for first-time buyers with strong income but some existing debt.
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In Flower Mound, first-time friendly neighborhoods include Wellington, Bridlewood, and Canyon Falls, where entry-level homes may start in the mid-$400Ks.
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In Southlake, homes tend to start higher, but options exist in Timarron, South Ridge Lakes, and the northern border of Carroll ISD, especially for buyers with dual incomes or family support.
School districts, trail systems, and community amenities make these areas worth the investment—especially for buyers planning to grow roots.
The BlueFuse Buyer Blueprint: Your Personalized Path
We’ve helped buyers with all kinds of financial situations—student loans, self-employment, new careers—navigate their way to a new home.
Our Buyer Blueprint outlines your next best steps, whether that’s:
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Getting pre-approved
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Strengthening your credit
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Exploring grant programs
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Or making your first offer
Let’s map it out together.
FAQs: Buying a Home with Student Loans in Texas
Can I buy a house in Texas if I still have student loans?
Yes. Many first-time homebuyers in Texas qualify for mortgages while still repaying student loans. It depends on your income, DTI, and credit profile.
Do student loans affect my mortgage approval?
Yes, they factor into your DTI, but they don’t disqualify you automatically. Responsible payment history and strong income matter more.
What credit score do I need to buy a home with student loans?
Aim for a 620+ for most Conventional loans. FHA programs may allow lower scores.
Are there first-time buyer programs in Texas for people with student loans?
Yes. Programs like TDHCA, FHA, and Freddie Mac’s Home Possible offer great support, even with student loan debt.
Let’s Build Your Future—Student Loans and All
Homeownership isn’t out of reach. It’s just a matter of having the right guide, the right lender, and the right plan.
Student loans don’t have to delay your dreams.
Let’s take that first step together—right here in the heart of North Texas.
👉 Schedule a free consultation and let’s build your future together.
