Step 7 of 8
Step 7: Buying a home or a practice
Lenders look at your monthly debt payments against your income. Your student loan plan changes that number.
What you need to know
Mortgage and practice lenders use a debt-to-income (DTI) ratio: your monthly debt payments divided by your gross monthly income. Many look for 43% or less, including the new housing payment.
An income-driven payment like RAP is often far lower than a 10-year standard payment on the same balance, which can make a big difference to what you qualify for. Some lenders use your actual payment; others use a percentage of your balance, so ask how yours treats student loans.
Enter your planned housing payment and other debts below to see where you stand.
Planning to buy a practice? Ask the lender how it counts student loans before you choose between paying aggressively and staying on RAP.
Buying a home or practice? Debt-to-income check
Mortgage and practice lenders look at your monthly debt payments ÷ monthly gross income — not your total balance. A low RAP payment keeps this ratio healthy; a high refinance payment can get a loan denied. Many lenders want 43% or less, and 36% or less is comfortable.
Uses each plan's year-3 student loan payment. Ask your servicer for a letter showing your actual IDR payment — lenders will usually accept it instead of a percentage of your balance.
Estimates only — not financial, tax, or legal advice. Rules reflect the One Big Beautiful Bill Act as implemented by the Department of Education (last reviewed September 2026). Confirm with your servicer, StudentAid.gov, and a CPA or planner who works with dentists.