Does FHA count student loans?
Yes. FHA uses either the actual monthly payment shown on the credit report, or 0.5% of the outstanding balance if the actual payment is $0 or income-driven.
What this actually means.
This is one of the bigger DTI levers for younger buyers with large student-loan balances. A documented IDR payment may count if it fully amortizes the loan, but $0/IBR/PAYE usually defaults to the 0.5% calculation.
Where this can move.
Income type and history, recurring debts shown on the credit report, automated vs manual underwriting, compensating factors, and lender overlays can change the answer.
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Educational only. FHA guidelines, lender overlays, rates, fees, and underwriting requirements can change. Final eligibility depends on full underwriting review. Mortgage Expert, Inc. is not affiliated with HUD, FHA, or any government agency.