You Can Buy a Home When You Have Student Loans

(Even with outstanding debt, you still have a path to homeownership in West Palm Beach, North Palm Beach & Wellington, FL)

If you’re a young adult—or any adult—with student loan debt, you may feel like the dream of buying a home is out of reach. But the good news: It isn’t. In the West Palm Beach, Florida (FL) region, including North Palm Beach and Wellington, you can pursue homeownership even while you still have student loans. Whether you’re just looking at ideas or you’re ready to move, this guide can help you understand how to make it happen—with the right strategy, the right home loan options, and the right local expert on your side.

In this post, we’ll cover:

• Why student debt doesn’t automatically shut the door on buying a house

• What you need to know about qualifying for a mortgage with loans

• The special considerations for first-time homebuyers (you may “want to buy your first place”)

• How to talk to a lender and explore your home loan options

• Local market insights for West Palm Beach, North Palm Beach & Wellington

• Why working with Christian Penner, Mortgage Broker / Mortgage Lender / Real Estate Agent / Real Estate Advisor at America’s Mortgage Solutions (AMS) matters

Let’s dive in.

Why Having Student Loans Doesn’t Mean You Can’t Buy a Home

The myth that debt disqualifies you

Many would-be buyers assume that if they still owe student loans, they cannot qualify for a mortgage. In reality, current data shows otherwise. For instance, as of January 2025, one report found that 37% of first-time homebuyers still had student loan debt. Education Data Initiative+2 That means more than one in three first-time buyers were managing student loan debt at the time they purchased a home.

Another study notes that although student loan debt can delay homeownership, it does not automatically prevent it. journals.uchicago.edu+1

How student debt shows up in mortgage underwriting

Your total debt doesn’t need to be zero. What matters is how your monthly payments (including your student loan payment) affect your debt-to-income ratio (DTI) and your credit profile. As one resource explains: “Yes, home buyers with student loans can qualify for a mortgage because you don’t need to be 100 % debt-free.” rocketmortgage.com

Some of the key factors lenders look at:

• Monthly payment obligations for your student loans.

• Whether your loans are in repayment, deferment, or forbearance (note: many recent guidelines treat even deferred loans as part of your debt load). NJ REALTORS® › New Jersey REALTORS®+1

• Your overall income, job stability and credit score.

• The size of the down payment you can make, and the value of the home you want to buy.

• The type of loan you choose (conventional, FHA, USDA, etc.).

• The local real estate market—especially here in West Palm Beach / North Palm Beach / Wellington, FL.

Understanding the “first-time homebuyers” statistic

You’ll often see references to “first-time homebuyers” and how a certain percentage of them carry student loan debt. For example: The share of first-time buyers in the national market dropped to 24% in 2024, down from about 32% in 2023. nar.realtor+1 But when we talk about “you want to buy your first place,” this means you can still be a first-time homeowner even with student debt—just with careful planning and the right professional help.

So in summary: Holding student loans does create additional scrutiny, but it does not automatically mean you cannot buy a home in Wellington, West Palm Beach or North Palm Beach. The path is open—and we’ll walk you through it.

What “Want to Buy Your First Place” Really Means

Defining first-time homebuyer in this context

When you “want to buy your first place,” you’re likely part of the group of first-time homebuyers. For tax or loan-program purposes, “first-time” often means you’ve not owned a home in the past three years (though definitions may vary by lender or program). The important takeaway: you’re eligible for first-time buyer programs even if you have student debt, which is promising.

Why the 32 % number is often referenced

You may have heard the term: “32% of first-time homebuyers…” This figure comes from earlier years when about 32% of buyers in the market were first-time buyers.Merrill Lynch+1 While that statistic is more general, it underscores how competitive first-time buying is—and why you’ll want to move deliberately if you “want to buy your first place.”

Combining “buying a home” + “student loans”

When you’re balancing buying a home and outstanding student loans, here are some key phrases to keep front of mind:

• “Student loan debt and homeownership”

• “Student loans and first-time homebuyers”

• “Home loan options while repaying student loans”

• “Talk to a lender about buying a home with student loans”
  And yes, you’ll see how it all ties in with your local market here in Florida.

Local Market Snapshot: West Palm Beach, North Palm Beach & Wellington, FL

Why this region matters

Living in Florida, especially in Palm Beach County, has some advantages: no state income tax, plenty of desirable neighborhoods, and a vibrant lifestyle. For anyone looking to buy in West Palm Beach, North Palm Beach, or Wellington, the market may be more accessible than ultra-high priced markets elsewhere—but you still need to be strategic.

What working with a local expert gives you

Enter Christian Penner, Mortgage Broker / Mortgage Lender / Real Estate Agent / Real Estate Advisor at America’s Mortgage Solutions (AMS). When you’re in the Palm Beach area and you have student loans, Christian can:

• Review your student-loan payment and repayment plan.

• Map which home loan options (FHA, conventional, USDA, VA, etc.) fit your profile.

• Help you set a realistic budget so you don’t stretch too far in the West Palm Beach Real Estate market.

• Provide insights on neighborhoods within Wellington, North Palm Beach, and West Palm Beach that match first-time buyer budgets.

• Guide you through the local real estate market side too—why that matters is that Christian’s business is rooted locally, so you benefit from a well-connected professional.

Typical numbers & trends to keep in mind

• Nationally, first-time homebuyers with student loan debt spend an average of 39% less on their homes than buyers without student debt. Education Data Initiative+1

• National “first-time buyer” share dropped from about 32% to 24% in recent years.nar.realtor+1
  In the local West Palm Beach / Wellington area, that means budget-conscious buyers with student loans will want to aim thoroughly at affordability, not just “what if I stretch.”

Neighborhoods worth considering

• Wellington: Family-friendly, newer build inventory, good for buyers who may have some savings but still student loans.

• North Palm Beach: Slightly elevated price point, but with targeted search you can find condos or smaller single-family homes within reach.

• West Palm Beach (city area or surrounding): Offers a mix of housing types—townhomes, smaller lots, sometimes renovation opportunities that fit first-time budgets.

Christian at AMS can help you scan listings and match them to your loan eligibility and student-loan obligations.

Your Home Loan Options When You Have Student Loans

What are the main loan types?

When looking at home loan options, there are a few major categories to examine. The federal site Consumer Financial Protection Bureau outlines loan types including conventional, government-backed, and special programs. Consumer Financial Protection Bureau

Here are some you’ll likely consider:

• Conventional loans: Standard mortgages with stricter requirements (credit, down payment) but potentially better rates if qualified.

• FHA loans: Backed by the Federal Housing Administration, often lower down payments and more flexible credit.

• USDA loans: For qualifying areas (rural/remote) with no down payment.

• VA loans: For eligible veterans or military members—no down payment often.

• First-time buyer programs and state/local assistance: These may give down-payment help or lower rates.

How student loans affect your eligibility

When you have student loans, the key things lenders evaluate: your monthly payment, your debt-to-income ratio (DTI), your credit score, your down payment savings, and the value of the home you want.

Practical tips for improving your eligibility:

1. Know your student loan payment — If you’re in an Income-Driven Repayment (IDR) plan, the payment may be smaller; lenders will count the payment.

2. Improve your credit score — On-time payments on your student loans help.

3. Save for down payment + closing costs — Even with loans, having 3-5% down is more viable than zero down in many cases.

4. Talk to a lender early — This is where Christian Penner at AMS comes in. He can help evaluate your student-loan profile and map out what you can afford.

5. Consider home loan programs for first-time buyers — Many only require modest down payments or have flexible guidelines.

Example conversation you should have with your lender

When you talk to a lender, you’ll want to ask:

• “Given my student loan payment, what is my current DTI?”

• “What home price can I afford in West Palm Beach / Wellington?”

• “Which home loan options are available to me with student loans?”

• “What down payment and closing cost savings can I access?”

• “Are there local first-time homebuyer programs here in Florida or Palm Beach County I could use?”

Christian at America’s Mortgage Solutions can walk you through these questions in your local context.

Budgeting for the student-loan + mortgage combo

If you have student loans and are planning to buy your first home, here’s a sample budget breakdown to help guide you (specific numbers will vary based on your income, student-loan payment, interest rate, etc.):

Item Sample Monthly Amount Student loan payment $300 Estimated mortgage payment (PITI + insurance) $1,800 Other minimum debt payments (car, cards) $200 Total monthly debt payments $2,300 Gross monthly income needed (assuming max DTI ~ 45 %) ~$5,100+

This illustrates that you’ll want to make sure your income supports both your student-loan payment and your mortgage payment comfortably. Christian can run customized numbers for your case.

Overcoming the Major Hurdles

When you have student loans and want to buy a home, you’ll face some specific hurdles—but you can overcome them. Here’s how.

Hurdle 1: Debt-to-Income Ratio (DTI)

If your monthly student loan payment is high relative to your income, your DTI may exceed lender thresholds. One study noted that for every $1,000 increase in student loan debt, homeownership among recent college grads declined by 1.8 %.Education Data Initiative+1
Solution: Lower your monthly obligations, raise income, shorten loan term, or choose a loan with more flexible DTI limits.

Hurdle 2: Saving a Down Payment

Student loan payments often reduce your ability to save. The same report found 47% of student debt holders said the loans prevented them from making a down payment. Education Data Initiative
Solution: Automate savings, reduce non-essential expenses, set a clear down-payment goal, and consider assistance programs (especially first-time buyer programs in Florida).

Hurdle 3: Credit Score & Loan History

If you have missed student loan payments or high balances, credit will be impacted.
Solution: Make all payments on time, avoid additional high-interest debt, consider paying down revolving credit, and review your credit report.

Hurdle 4: Home Price Expectations vs. Reality

With student loans, you may need to adjust and look at homes that align with your budget. One study found that first-time buyers with student loans purchased homes that were 39% less expensive than those without student loans. IDEAS/RePEc+1
Solution: Be flexible on location or property type, consider fixer-uppers, or prioritize longer-term wealth building over immediate luxury.

Hurdle 5: Local Market Conditions

In the West Palm Beach / North Palm Beach / Wellington area, housing inventory, interest rates and competition may impact what you can afford. Work locally with Christian Penner to identify neighborhoods with good value.

Action Plan: How to Get Started Today

Here is a step-by-step roadmap to move from “I have student loans” to “I can buy a home”:

Step 1: Connect with Christian Penner at America’s Mortgage Solutions (AMS)

Schedule a consultation. Bring your student loan balances, monthly payments, income details, credit score and any savings you have. He’ll review your profile in the West Palm Beach / North Palm Beach / Wellington context.

Step 2: Review and choose your home loan options

Together you’ll evaluate the kinds of loans available—FHA, conventional, USDA, etc.—and identify how your student loans will impact your DTI and eligibility. You’ll ask: “What are my home loan options given my student-loan payment?” Christian will walk you through.

Step 3: Set your budget and neighbourhood focus

Based on your qualification, you’ll determine a safe home-price range—one that takes into account your student loans and leaves room for savings, repairs and lifestyle. In Wellington or West Palm Beach that might mean focusing on specific neighborhoods or smaller properties.

Step 4: Save for down payment + closing costs

Even if you have student loans, having 3–5 % down (or more if feasible) improves your loan chances. Automate savings, reduce discretionary expenses, and consider state/local first-time buyer programs in Florida.

Step 5: Monitor your student-loan repayment and credit health

Make every payment on time. Avoid taking on new high-interest debt. Lower your student loan balance where possible. All these raise your credit profile and strengthen your lender application.

Step 6: Search listings and submit your offer

With Christian’s help you’ll review current listings in Wellington, North Palm Beach or West Palm Beach within your budget. Once you find something you like, he will assist with pre-approval, making the offer and closing the deal.

Why This Matters for You

If you’ve been holding off buying a home because of student loan debt, this post is your reminder: you can move forward. You can become a homeowner in Wellington, West Palm Beach or North Palm Beach, even while managing your student loans. The key is partnering with a knowledgeable local expert like Christian Penner at America’s Mortgage Solutions, exploring your home loan options, budgeting smartly, and leveraging first-time buyer friendly strategies.

You’re not alone in this journey. Many first-time homebuyers do carry student loan debt—and some of them are already living in their dream homes while paying those loans. With the right plan and the right team, you can be one of them.

Final Thought

If you’re ready to go from “I want to buy my first place” to “I’m getting my keys,” now is your moment. Student loans are not a barrier—they’re a factor to manage. The local housing market in West Palm Beach, North Palm Beach and Wellington offers opportunity. With the guidance of Christian Penner at America’s Mortgage Solutions (AMS), and by focusing on the right home loan options, you’ll be well positioned to turn your homeownership goal into reality.

Go ahead and take that first step—make the call, gather your documents, and explore your path. Your future home is waiting.