Think your student loan debt disqualifies you from homeownership in Bastrop? Think again. Many buyers—especially millennials and Gen Z—are purchasing homes while carrying student loans. You just need the right strategy and lending partner.
Here’s how to buy a home in Bastrop, TX while managing your student debt wisely.
1. Understand Your Debt-to-Income (DTI) Ratio
Lenders look at how much of your income goes toward debt payments.
- Aim for a DTI under 43% (including your future mortgage)
- Include student loans, car loans, and credit cards
💡 Tip: Income-based repayment plans often lower your monthly obligation, improving your DTI.
2. Choose the Right Loan Type
Some loans are more student-debt-friendly than others:
- FHA Loans – Flexible guidelines, allow higher DTIs
- Conventional Loans – May use actual IBR payments
- VA Loans – Great for veterans; often overlook deferred student loans
3. Boost Your Down Payment (Even if Small)
A larger down payment improves your approval odds—but even 3% can work.
- Ask about TSAHC and down payment assistance programs available in Bastrop County
- Consider gifts from family or using a 401(k) loan carefully
4. Get Pre-Approved Early
Work with a local Bastrop lender who understands student loan calculations. National lenders can miscalculate your debt and hurt your buying power.
Final Thoughts
Student debt doesn’t mean homeownership is out of reach—it just means you need the right team. I’ve helped several Bastrop buyers with student loans navigate the path to ownership successfully.
📘 Want to explore your buying power with student loans? Let’s build your plan together.
