Key takeaways
- Lenders count a qualifying payment rather than what you actually pay, so a $0 student loan bill usually becomes 0.5% of the balance a month on Freddie Mac and FHA loans, 1% on deferred Fannie Mae loans, or 5% of the balance ÷ 12 on VA loans.
- A documented payment above $0 is used instead on all four programs, and Tomo Mortgage applies it to FHA loans even when the credit report shows $0.
- Some loans can count as $0, including a documented $0 income-driven payment on a Fannie Mae loan, a VA loan deferred at least 12 months past closing, and loans close to forgiveness or paid by someone else.
- If you’re leaving SAVE forbearance, bring your latest servicer statement. If a balance-based payment pushes you over the DTI limit and your new payment will be lower, get it documented before you get preapproved.
Mortgage lenders don’t always count what you actually pay on your student loans. They count a qualifying payment, set by your loan program and by whether your credit report shows a real payment, a $0 payment, or deferment.
That number decides how much of your income is left for a mortgage. It also helps decide whether you should get preapproved now or first get a new payment documented, which we’ll answer below.
Do student loans count if you pay $0 or they’re deferred?
Usually, yes. Every major program counts student loans in your debt-to-income ratio (DTI), and a $0 bill rarely counts as $0.
The biggest exceptions are a documented $0 income-driven payment on a Fannie Mae loan and a VA loan you can show will stay deferred at least 12 months past closing. The program-by-program rules are in the table below.
When a student loan can drop out of your DTI
Some situations let a lender leave a loan out entirely, with documentation.
| Situation | Program | What the lender needs |
| 10 or fewer payments left before forgiveness, cancellation or discharge, or the full balance is forgiven when a deferment or forbearance ends | Freddie Mac | Proof from the loan program or employer that you’re eligible or approved, plus the payments remaining or the deferment end date |
| Loan already forgiven, canceled, discharged or paid in full | FHA | Written confirmation from the loan program, creditor or servicer |
| Someone else has been making the payments | Fannie Mae, Freddie Mac | 12 months of on-time payments by the other person (Fannie Mae asks for their canceled checks or bank statements) |
| You co-signed and someone else is paying | VA | Evidence the other person pays and the loan is current |
| Deferred at least 12 months past closing | VA | Written evidence of the deferment period |
Fannie Mae and Freddie Mac don’t allow the paid-by-others exclusion when the payer is an interested party, such as the seller or real estate agent. Freddie Mac names a parent paying a borrower’s student loans as a common example. For FHA or VA, ask your lender whether someone else’s payments can be excluded.
What payment will your lender use?
Find your status in the left column, then read across to your loan program. These are the program rules as of October 5, 2026. An individual lender can apply a stricter method. Tomo Mortgage follows these program rules without stricter internal overlays.
| Your student loan status | Fannie Mae | Freddie Mac | FHA | VA |
| Credit report shows a payment above $0 | That payment, or the payment on your latest statement if the report is wrong | That payment, unless your file documents a different payment above $0 | That payment, or a lower documented payment backed by servicer paperwork | That payment if it’s above 5% of the balance ÷ 12; if it’s below, the threshold unless a servicer statement dated within 60 days of closing shows the lower payment |
| Income-driven plan, documented payment above $0 | The documented payment | The documented payment, unless your income recertification is due by your first mortgage payment (then the lender may need a higher figure) | The handbook allows the actual documented payment above $0; some lenders still use 0.5% when the credit report shows $0 | The statement payment, if dated within 60 days of closing and continuing at least 12 months past closing |
| Income-driven plan, documented $0 payment | May be counted as $0 | 0.5% of the balance | 0.5% of the balance | Not carved out in VA’s rule; lenders differ, so ask |
| Deferment or forbearance, including SAVE forbearance | 1% of the balance, or a fully amortizing payment based on your loan terms | 0.5% of the balance, unless a payment above $0 is documented | 0.5% of the balance | Deferred 12+ months past closing: not counted. Otherwise: the 5% ÷ 12 test |
Sources: Fannie Mae Selling Guide B3-6-05 (updated Aug. 5, 2026); Freddie Mac Guide 5401.2 (effective Aug. 5, 2026), as revised by Bulletin 2025-10; HUD Handbook 4000.1, section II.A.4.b.iv(H) (updated Aug. 12, 2026); VA Lender’s Handbook M26-7, Chapter 4, Topic 5.
VA’s 2023 lender training adds that the payment must continue at least 12 months past closing.
On Freddie Mac’s recertification rule: if your income must be recertified, or your payment will rise, by your first mortgage payment, the lender may have to use the greater of your current payment, 0.5% of the balance or the higher future payment. A lower future payment counts once approved.
How Tomo Mortgage counts student loans
Tomo Mortgage follows the Fannie Mae, Freddie Mac, FHA and VA rules above without stricter internal overlays or lower DTI caps, and qualifies borrowers on the agencies’ automated underwriting findings.
In practice, Tomo Mortgage uses a documented payment above $0 even when the credit report shows $0, including on FHA loans. A documented $0 payment counts as $0 on a Fannie Mae loan but becomes 0.5% of the balance on Freddie Mac and FHA loans. Deferment or forbearance follows the table above.
Documents that work include an income-driven repayment plan approval letter, a servicer payment schedule, or a current billing statement showing your payment under an active plan. VA documentation must meet the timing and continuation requirements in the table.
If you’re weighing a VA loan against a conventional one, check out our VA vs. conventional loans guide
What the difference looks like on a $60,000 balance
The same loan can count very differently depending on its status. This example assumes $60,000 in student loans and $7,000 in gross monthly income.
| How the loan is counted | Qualifying payment | Share of monthly income |
| Fannie Mae, deferment or forbearance (1%) | $600 | 8.6% |
| Freddie Mac or FHA, $0 on credit report (0.5%) | $300 | 4.3% |
| VA threshold (5% ÷ 12) | $250 | 3.6% |
| Documented income-driven payment of $150 | $150 | 2.1% |
| Fannie Mae, documented $0 income-driven payment | $0 | 0% |
That spread can move your total DTI by more than eight percentage points. Fannie Mae’s guidelines allow up to 50% DTI through automated underwriting; manually underwritten loans are capped at 36%, or 45% with credit score and reserve requirements. Lenders may set lower limits.
To see how a lower qualifying payment changes your budget, try the Tomo Mortgage affordability calculator.
Coming out of SAVE forbearance? Your number can change
While your loans sit in SAVE forbearance, most programs count a share of your balance. Once your new plan is processed and a payment is documented, Fannie Mae and Freddie Mac generally let lenders use that payment instead, and VA does with a recent servicer statement. FHA lenders differ when the credit report still shows $0.
Per the federal servicer MOHELA, a court order ended the SAVE Plan on March 10, 2026. MOHELA sent notices between July and September 2026, and borrowers have 90 days from the date of their notice to choose a new plan. Once the new plan is processed, SAVE forbearance ends.
Three details matter for your mortgage:
- RAP has a $10 minimum. The new Repayment Assistance Plan can’t go below $10 a month, so Fannie Mae’s $0 path won’t apply.
- Credit reports can lag. Fannie Mae lets lenders use your latest student loan statement when the credit report shows the wrong payment.
- Watch your recertification date. On a Freddie Mac loan, a recertification due by your first mortgage payment can require the lender to count more than your current payment.
What Tomo Mortgage accepts during the switch: a repayment plan confirmation letter from your servicer, or an updated billing statement showing your active payment outside forbearance. If your credit report still shows SAVE forbearance or a $0 payment, that document is what lets the underwriter count your real payment.
Repayment-plan choice has long-term costs, including forgiveness timelines. Compare plans with StudentAid.gov’s Repayment Calculator or your servicer rather than choosing one only for mortgage purposes.
Should you get preapproved now or wait for a new payment?
Compare the payment your lender would count today with what it would count once a new plan is documented. You can estimate the second with StudentAid.gov’s Repayment Calculator.
- Get preapproved now if your DTI works with today’s number, or if today’s number is already lower than your expected new payment. Waiting won’t help in either case.
- Get the new payment documented first if today’s number pushes you past your lender’s DTI limit and your new payment will be lower. Bring the servicer statement or approval letter showing it.
- Do both if you’re unsure. A preapproval now shows where you stand. At Tomo Mortgage, if your credit report is less than 120 days old, the underwriter can update your student loan payment and rerun automated underwriting without another credit pull.
What to check before you get preapproved
Have these in hand so the lender counts the right number from preapproval through mortgage underwriting:
- Your credit report and latest servicer statement. Check what each student loan shows and bring the statement that documents your current payment. You can pull free credit reports at AnnualCreditReport.com. For VA loans, a payment below the 5% ÷ 12 threshold requires a recent statement and must continue at least 12 months past closing.
- Your loan status and any exclusion paperwork. Repayment, income-driven, deferment and forbearance follow different rules. Bring proof of forgiveness eligibility, discharge, payments by someone else or a qualifying deferment if it applies.
- The lender’s method. Several program options are written as “may,” so a lender can choose a stricter calculation. Ask which one it will use. Tomo Mortgage follows the agency rules as written.
Should you pay off student loans before buying a house?
It depends on which rule sets your qualifying payment.
- Percentage rules: paying down the balance lowers the qualifying payment directly. Paying $10,000 off a loan counted at 0.5% removes $50 a month.
- A fixed documented payment: extra payments usually don’t lower the required monthly bill, so your DTI may not change. Your servicer may instead apply extra money to future bills.
- Paying a loan off completely removes its payment from the calculation.
Money spent paying down student loans is money not available for your down payment, closing costs or savings. Run both versions through how much house you can afford before deciding.
See what you may qualify for with student loans
Preapproval is where you find out how a lender will count your student loans using your own credit report. Tomo Mortgage preapproval uses a soft credit check, so it doesn’t affect your credit score; a hard inquiry happens later when you submit a full mortgage application.
Tomo Mortgage, LLC. NMLS #2059741. Equal Housing Lender.
Frequently asked questions
Will my student loans stop me from buying a house?
Not by themselves. Lenders count student loans in your debt-to-income ratio, often even when your bill is $0, rather than excluding borrowers simply because they have student debt. What matters is the payment your lender has to count. The main exceptions are a documented $0 income-driven payment on a Fannie Mae loan, a long deferment on a VA loan, and the exclusions listed above. Delinquent federal debt is a separate issue for FHA and VA loans (see below).
Can you buy a house with $100,000 in student loans?
The balance matters mainly through the payment it creates. With $0 on your credit report, Freddie Mac and FHA count $500 a month on $100,000. Fannie Mae counts $1,000 for a deferred loan, or a fully amortizing payment. VA’s threshold is about $417. A documented income-driven payment can be much lower.
What is the 7-year rule for student loans?
The 7-year rule refers to credit reporting. According to the CFPB, credit reporting companies can generally report most negative information for seven years. Those time limits don’t apply when the report is used for an application for more than $150,000 of credit, which can include a mortgage.
Can a defaulted federal student loan affect an FHA or VA loan?
Yes. HUD’s handbook prohibits lenders from processing an FHA application for a borrower with delinquent federal non-tax debt, and every borrower is checked against HUD’s CAIVRS database. A verified delinquent debt makes you ineligible until you resolve it with the agency you owe. VA lenders also run a CAIVRS check.
Do private student loans count the same way?
Yes. FHA’s handbook includes all student loans in liabilities, regardless of payment type or status. Fannie Mae and Freddie Mac likewise don’t separate federal from private loans. Private loans aren’t eligible for federal income-driven plans, so the statement payment or balance-based rule usually applies.