DTI math, max purchase price by lender type, and how your IDR payment changes everything. Conventional, FHA, and physician/professional loans compared.
Your finances
$125K
Use your IDR amount if on SAVE/PAYE/IBR. Use Standard payment otherwise.
$450
$350
$425K
5.0%
6.85%
Your buying readiness
Best Choice
Conventional
Highest purchase price you can responsibly support.
Front-end DTI
0%
Housing / income
Back-end DTI
0%
All debts / income
Est. monthly PITI
$0
Principal+int+tax+ins
Down payment cash
$0
Required at close
Front-end DTI (housing)0% / 28% limit
Back-end DTI (total debts)0% / 36% limit
Conventional
Conventional 30-year
Standard limits: 28% front-end, 36-45% back-end. Best rates if credit is strong.
Max price
$0
Down required
5-20%
Min credit
620+
PMI
Yes <20%
FHA
FHA loan
Looser DTI: 31% front, 43% back. Lower down, but MIP is permanent.
Max price
$0
Down required
3.5%
Min credit
580+
MIP
Lifetime
Professional
NP / professional loan
Excludes student debt or uses IDR amount. 0-5% down, no PMI. Limited lenders for NPs.
Estimates use standard mortgage underwriting rules. Actual qualification depends on full underwriting, asset reserves, employment history, property type, and lender-specific overlays. Many lenders count 1% of student loan balance instead of IDR payment for conventional loans (Fannie Mae allows IDR amount with documentation). Verify with a licensed loan officer. This tool is informational, not financial advice.
How DTI works for NP borrowers
Front-end DTI is your projected monthly housing cost (principal, interest, taxes, insurance, HOA) divided by gross monthly income. Conventional cap: 28%. FHA cap: 31%. Some lenders flex up to 35-37% for strong credit.
Back-end DTI is total monthly debt obligations (housing plus student loans, car, credit minimums, child support) divided by gross monthly income. Conventional cap: 36-45%. FHA cap: 43-50%. Professional loans often allow up to 45%.
How student debt affects qualification
This is where NPs get hurt. Many lenders ignore your IDR payment and instead use 0.5%-1% of your total student loan balance as the qualifying monthly debt. On $150K of debt, that is $750 to $1,500 in fictional debt service, even if your actual SAVE payment is $250.
Fannie Mae conventional allows the actual IDR payment on credit reports if greater than $0. Freddie Mac allows IDR amount or 0.5% of balance, whichever is greater. FHA uses the actual IDR payment as long as it is greater than $0 and reported. Professional loans often exclude student debt entirely or use IDR.
Bottom line: shop your loan officer carefully. Ask which student-debt rule they apply before they pull credit.
Three mortgage strategies for NPs
Conventional 30-year. Best when credit is 720+, you have 5-20% down, and your back-end DTI fits under 45%. Lowest long-term cost if you can avoid PMI.
FHA loan. Best when credit is 620-700 or you have only 3.5% down. The catch: MIP is now lifetime for new FHA loans, costing 0.55%-0.85% of loan balance per year forever.
NP / professional loan. Best when student debt would tank your conventional DTI. Some specialty lenders treat NPs like physicians for underwriting purposes (ignore student debt, allow 0-5% down, no PMI). Rates may be 0.25-0.5% higher than conventional.
Frequently asked questions
Should I pay off student loans before buying?
Usually no. If you are on PSLF or aggressive IDR, paying down balance is wasted money. Better strategy: get on IDR, get a low documented payment, then qualify for a mortgage based on that lower payment.
How much house can I really afford?
Different from how much you can qualify for. Affording means PITI + maintenance + utilities + emergency fund stays under ~30% of take-home. Just because a bank approves you for $500K does not mean you should buy at $500K.
What about VA or USDA loans?
VA: 0% down, no PMI, available if you are a veteran or active duty. USDA: 0% down, available in rural areas with income caps. Both can be excellent for qualifying NPs, often beating conventional and FHA.
Do I need a 20% down payment?
No. 20% avoids PMI on conventional but is rarely the right move for early-career NPs. Better: 5-10% down, accept PMI for a few years, refinance to drop PMI once you have 20% equity through appreciation or paydown.