2026 Guidelines for Student Loans and Mortgages

Student Loans and Mortgage Approval Guidelines (2026)

Loan Type	Treatment of Student Loan Debt in Mortgage Approval
Conventional (Fannie Mae)	Use actual monthly payment from credit report or loan statement. If in deferment/forbearance, use 1% of balance or one monthly payment, whichever is greater.
Conventional (Freddie Mac)	Use actual monthly payment. If in deferment/forbearance, use 0.5% of balance.
FHA	Use actual monthly payment. If in deferment/forbearance, use 0.5% of balance or one monthly payment.
VA	Use actual monthly payment or 5% of balance ÷ 12, whichever is higher. If deferred, it is excluded from DTI.
USDA	Use actual monthly payment. If in deferment or on IDR plan, use 0.5% of balance or one monthly payment.

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Key Takeaways for Loan Officers and Homebuyers:

• Deferred or IDR student loans can still impact your DTI (Debt-to-Income Ratio) unless you’re using a VA loan.
• VA loans are most flexible, often excluding deferred student debt from underwriting.
• Freddie Mac and FHA offer favorable assumptions using 0.5% of the balance, which can significantly help approval chances.
• Always get a current student loan statement and ensure accurate reporting on the credit report.