No. Having student loans does not automatically disqualify you from an FHA loan. FHA lenders include your student loan payment in your debt-to-income (DTI) ratio, but many Nevada borrowers with student debt successfully qualify using income-driven repayment plans, compensating factors, or by increasing their income or down payment.

FHA lenders typically use either 1% of your total student loan balance per month, OR your actual documented monthly payment if you're on an income-driven repayment plan (IBR, PAYE, REPAYE, SAVE). For example, a $40,000 balance would count as $400/month under the 1% rule. If you're on an income-driven plan paying $150/month and provide documentation from your servicer, the lender will use $150 instead.

Yes. If you're on an income-driven repayment plan and your calculated payment is $0 based on your income, FHA lenders can use $0 in the DTI calculation as long as you provide official documentation from your loan servicer showing the $0 payment amount. This can significantly improve your qualification odds.

Not necessarily. It's usually better to keep your cash for the down payment (3.5%) and closing costs rather than paying off student loans, especially if you can switch to an income-driven repayment plan with a low monthly payment. However, if you have high-interest private student loans with large monthly payments that are hurting your DTI, paying those down strategically could help you qualify.

FHA guidelines allow DTI ratios up to 43% with automated underwriting, and up to 50% or higher with manual underwriting and strong compensating factors (high credit scores, large down payment, cash reserves). Many Nevada borrowers with student loans qualify at DTI ratios between 40-45%. Working with an experienced FHA lender can help you maximize your approval odds even with higher DTI.