{"id":15603,"date":"2026-08-13T16:28:35","date_gmt":"2026-08-13T22:28:35","guid":{"rendered":"https:\/\/www.richmondamerican.com\/agent-blog\/?p=15603"},"modified":"2026-08-13T16:28:41","modified_gmt":"2026-08-13T22:28:41","slug":"do-student-loans-affect-buying-a-house","status":"publish","type":"post","link":"https:\/\/www.richmondamerican.com\/agent-blog\/do-student-loans-affect-buying-a-house\/","title":{"rendered":"Do Student Loans Affect Buying a House? What Your Clients Need to Know"},"content":{"rendered":"\n

A college education is traditionally one of the wisest investments<\/a> someone can make, but it comes with a price tag that keeps climbing. In the U.S., student loan debt<\/a> now tops $1.8 trillion, and with the federal repayment landscape undergoing its most significant overhaul in decades<\/a>, many of your clients may be wondering whether homeownership is even on the table. Spoiler: it is. And you\u2019re in a great position to help them see that.<\/p>\n\n\n\n

For real estate professionals like yourself, the student loan conversation is becoming an increasingly important part of the buyer relationship. Clients carrying student debt may feel uncertain, discouraged, or outright convinced that homeownership is out of reach. <\/p>\n\n\n\n

Do student loans affect buying a house? Yes, but student debt doesn\u2019t disqualify a buyer, it just adds some nuance to the path forward. With the right guidance, planning, and resources, your clients can move confidently toward their dream of owning a home.<\/p>\n\n\n\n

Let\u2019s walk through the most common concerns you\u2019ll hear, and how to address them.<\/strong><\/p>\n\n\n\n

\u201cI can\u2019t save for a down payment while making student loan payments.\u201d<\/h2>\n\n\n\n
\"A<\/figure>\n\n\n\n

This is the objection you\u2019ll probably hear most often, and it\u2019s completely understandable. Monthly student loan obligations<\/a> can make it tough to set aside meaningful savings, especially in today\u2019s economic climate. According to NAR\u2019s 2025 Profile of Home Buyers and Sellers<\/a>, first-time buyer share dropped to a historic low of 21%, with the median first-time buyer age now at 40, a stat that reflects just how much financial headwinds are delaying homeownership. But delaying isn\u2019t the same as giving up, and that distinction matters.<\/p>\n\n\n\n

Here are some practical angles to share with clients who feel stuck:<\/strong><\/p>\n\n\n\n

Explore the new Repayment Assistance Plan (RAP)<\/h3>\n\n\n\n

Federal repayment programs are shifting significantly this year. Starting July 1, 2026, the new Repayment Assistance Plan (RAP)<\/a> became the primary income-driven option for new federal loan borrowers. Monthly payments are calculated as a percentage of income (as low as $10\/month for lower earners), and the government covers any interest not covered by payments. While RAP comes with a 30-year forgiveness timeline, longer than older income-driven repayment (IDR) plans, it can significantly reduce the monthly payment load that\u2019s eating into your client\u2019s ability to save.<\/p>\n\n\n\n

\n

Agent tip:<\/strong> If a client is currently on the SAVE plan or another income-driven plan that\u2019s being phased out, encourage them to connect with their loan servicer now about transitioning to RAP or another eligible plan.<\/p>\n<\/blockquote>\n\n\n\n

Consider refinancing private loans<\/h3>\n\n\n\n

For clients with private student loans, refinancing may offer a lower interest rate or a longer repayment term, both of which can reduce monthly payments. One important caveat to pass along: refinancing federal loans into private ones means losing access to federal protections like forgiveness programs and income-driven repayment options, so it\u2019s a tradeoff worth discussing with a financial advisor.<\/p>\n\n\n\n

Look into gift funds<\/h3>\n\n\n\n

Many buyers don\u2019t realize that money gifted by a family member can be used toward a down payment on many loan programs, when it\u2019s properly documented. This option can meaningfully accelerate a buyer\u2019s timeline, especially for clients who are financially stable but just not liquid enough to get over the down payment hurdle on their own.<\/p>\n\n\n\n

Research down payment assistance programs<\/h3>\n\n\n\n

State and local DPA programs<\/a> can offer grants or forgivable loans to qualified first-time buyers, sometimes covering a significant portion of upfront costs. Encouraging clients to explore these early in the process can open doors they didn\u2019t know existed, and make you<\/em> the agent who helped them find a way in.<\/p>\n\n\n\n

\u201cCan I build a good credit score while I still have student loan debt?\u201d<\/h2>\n\n\n\n
\"Young<\/figure>\n\n\n\n

Yes, and the sooner you can help your clients understand this, the better. When managed responsibly, student loans can help a credit profile. They\u2019re installment loans and may contribute to a more diverse credit mix, a positive factor in most scoring models.<\/p>\n\n\n\n

Here\u2019s a quick breakdown of the habits that matter most right now, when repayment activity is ramping back up:<\/p>\n\n\n\n