A growing number of people have student debt that can take many years to clear away. While you are continuing to pay off your student debt, life is still going on, and you may end up wanting to buying a Boston condo for sale during this time. However, it can be tricky to get a mortgage if you also have student debt. Student debt may affect a financial institution’s willingness to lend to you in the following ways.

Credit Report

To understand why student loans affect the ability to get a mortgage, you need to understand a little about the process of getting a mortgage. When you apply for a mortgage, the bank will check your credit report to see if you have any other preexisting payment obligations. Any outstanding payment obligations will lower the amount the bank is willing to loan to you. Your monthly payments for loans will show up as an obligation on any credit report.

Multiple Loans or Private Lenders

Any sort of debt on your credit report makes you look like a riskier investment for the bank, and the way private lenders operate can make your chances even worse. The shorter-term amortizations and higher interest rates associated with a student loan from a private lender could end up making your payment obligation appear inflated. There are similar issues if you have multiple student loans instead of one single, large loan. If you plan on getting a home anytime soon, it is best to avoid private lenders and consolidate multiple student loans into a single loan.

Loan Delinquencies

If you have a student loan, you should try to pay it off without any delinquencies. Skipping payments on a student loan can make it difficult to get a mortgage because it lowers your credit score. People who have a history of not being able to make loan payments for student loans will seem riskier to the bank. Lenders may be cautious about providing you with a mortgage if you seem unlikely to pay it back properly.

Inaccurate Documentation

If your student loans are either deferred or paid off, they should not technically affect your ability to get a mortgage. However, there may be bureaucratic inaccuracies that end up causing problems for you while hunting for a mortgage. In the case of deferments, lenders will automatically view the loan payments as being 2 percent of the principal balance unless you can get a payment letter from the lender that more accurately states what your payments will be. If you have paid off your loans, your report may still show the payment obligation until you can provide documents proving your debts are paid off.

Boston condos for sale

Back Bay new condos for sale
Beacon Hill  new condos for sale
Charlestown area new condos for sale
Navy Yard Charlestown  new condos for sale
Dorchester new condos for sale
Fenway  new condos for sale
Jamaica Plain new condos for sale
Leather District new condos for sale
Midtown  new condos for sale
Seaport District area new condos for sale
South Boston new condos for sale
South End new condos for sale
Waterfront new condos for sale
North End  new condos for sale
West End new condos for sale
East Boston new condos for sale

Condos around Boston to rent:

Back Bay area condos for rent
Beacon Hill area condos for rent
Charlestown area condos for rent
Navy Yard Charlestown area condos for rent
Dorchester area condos for rent
Fenway area condos for rent
Jamaica Plain area condos for rent
Leather District area condos for rent
Midtown area condos for rent
Seaport District area condos for rent
South Boston area condos for rent
South End area condos for rent
Waterfront area condos for rent
North End area condos for rent
West End area condos for rent
East Boston area condos for rent


Author Profile

John Ford
John Ford

Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs

In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.


For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.


Back Bay

Beacon Hill

Charles River Park


North End

South End

Seaport District

South Boston



Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.

John Ford
Ford Realty Inc
137 Charles Street
Boston, Ma 02114



Call Now