Blog - The Lending Coach

How to Buy a Home When You Have Student Loan Debt | A Smart, Step-by-Step Guide for Today’s Homebuyers

August 1, 2025 / Tom Bonetto / 0 Comments

If you’re carrying student loan debt and dreaming of owning a home, you’re not alone—and you’re certainly not out of luck.

One of the biggest myths I hear from first-time buyers is that student loans automatically disqualify them from getting a mortgage.

The truth is, buying a home with student loan debt is absolutely possible. In fact, I’ve helped many clients just like you navigate the process successfully.

With the right plan, a little guidance, and a mortgage coach in your corner, you can turn the dream of homeownership into a reality—even with those loan balances hanging around.

How Does Debt Impact Eligibility?

Let’s start by addressing the elephant in the room: student debt does impact your mortgage eligibility—but not always in the way people assume.

Lenders don’t just look at your loan balance; they’re far more focused on your monthly payments and how they fit into your overall debt-to-income ratio (DTI).

This ratio is simply a calculation that compares your monthly debts (including student loans, car loans, credit cards, and your future mortgage payment) to your monthly income.

Most loan programs have DTI limits, but if your payments are manageable and you’ve got steady income, qualifying is often well within reach.

Student Loans in Deferment

person holding black smartphone and white printer paper

Now here’s where it gets interesting: even if your student loans are in deferment or income-based repayment (IBR), there are options.

For example, FHA loans use a standardized 0.5% of the loan balance if there’s no payment reported—or they’ll use the actual IBR payment if it’s fully documented.

Conventional loans through Fannie Mae or Freddie Mac often allow you to qualify using the lower actual IBR payment, which can make a huge difference. Each loan program treats student loans a bit differently, and knowing how to match the right loan to your financial profile is key.

That’s where smart mortgage coaching really comes into play.

Credit Score and Financial Health

Aside from loan program guidelines, your credit score and overall financial health also matter. The good news?

Making consistent student loan payments over time can actually help your credit score. If your credit needs some TLC, don’t worry—that’s something I help clients with regularly.

Sometimes just a few small tweaks can raise your score enough to improve your rate or open up better loan options. We can review your credit report together and come up with a strategy that puts you in a stronger position.

Other Options

Another way to improve your chances is to lower other monthly debts or increase your income—two things that can quickly shift your DTI in the right direction. This could mean paying off a small car loan or credit card, picking up a side hustle, or even getting a co-borrower involved if it makes sense.

Remember, every situation is unique, and that’s why working with someone who takes the time to understand your goals makes all the difference.

Don’t Do It By Yourself – Get Expert Advice

One thing I always stress with my clients is this: don’t try to “figure it all out” on your own. The mortgage process can feel overwhelming, especially when student loans are part of the picture—but it doesn’t have to be.

My job as The Lending Coach is to break things down clearly, help you understand your options, and walk you through a plan that fits your life and your timeline. There’s no pressure—just clarity, strategy, and support.

So, if you’ve been holding off on buying a home because of your student loans, now is the time to take a fresh look. You might be closer to qualifying than you think.

You can connect with me here – so we can review your full financial picture and create a custom plan to move you forward. You absolutely can build wealth through real estate—and student debt doesn’t have to hold you back.

The blog postings on this site represent the positions, strategies or opinions of the author and do not necessarily represent the positions, strategies or opinions of Guild Mortgage Company or its affiliates. Each loan is subject to underwriter final approval. All information, loan programs, interest rates, terms and conditions are subject to change without notice. Always consult an accountant or tax advisor for full eligibility requirements on tax deductions.

Truflation: A New Lens for Understanding Inflation and Seizing Market Opportunities

July 26, 2025 / Tom Bonetto / 0 Comments

As a potential home buyer, investor, or real estate professional, understanding inflation is critical to making informed financial decisions.

As The Lending Coach, I’m committed to helping my clients in Arizona and California build generational wealth through smart mortgage strategies.

One tool gaining attention in the economic landscape is Truflation, a blockchain-based, real-time inflation index that claims to offer a more accurate and timely alternative to the traditional Consumer Price Index (CPI) reported by the Bureau of Labor Statistics (BLS).

In this post, I’ll explore what Truflation is, evaluate its reliability compared to BLS data, and discuss how borrowers, investors, and real estate agents can leverage this metric to spot market opportunities.

What is “Truflation”?

Truflation is a decentralized, blockchain-based platform that tracks inflation in real time, using over 18 million data points from more than 60 data providers.

Unlike the BLS CPI, which relies on a fixed basket of goods and services and is updated monthly with a 45-day lag, Truflation pulls daily price data for a wide range of consumer goods and services. This allows it to reflect current market conditions more dynamically.

Truflation’s methodology is transparent, auditable, and market-driven, aiming to address perceived shortcomings in traditional inflation metrics, such as outdated frameworks and subjective adjustments.

For example, posts on X have highlighted Truflation’s advantages, noting its use of 15 million data points compared to the BLS’s 80,000, and its real-time updates versus the BLS’s delayed reporting.

Additionally, Truflation avoids “black box” methodologies and centralized control, making it an appealing alternative for those seeking economic transparency.

Is Trueflation More Reliable Than BLS CPI?

The BLS CPI, while widely used, has faced criticism for its limitations. The CPI framework, last significantly updated in 1999, may not fully capture the realities of today’s economy, where e-commerce, electric vehicles, and other modern factors play significant roles.

For instance, the CPI uses “hedonic adjustments” to account for quality improvements, which introduces subjectivity and can understate inflation’s impact. Additionally, the CPI excludes asset prices like real estate and stocks, potentially missing key drivers of wealth and cost-of-living changes.

Truflation, by contrast, offers several advantages:

roll of american dollar banknotes tightened with band

Real-Time Data: Truflation updates daily, providing a near-instantaneous view of price changes, while BLS data lags by weeks. This timeliness can be crucial for anticipating market shifts.
Granular and Transparent: With millions of data points and an auditable blockchain framework, Truflation reduces reliance on subjective adjustments and centralized control.
Correlation with CPI: Despite its differences, Truflation’s inflation measurements have shown a high correlation (0.97 to 0.99) with headline CPI since the Federal Reserve began tightening monetary policy, suggesting it’s a credible alternative.

However, Truflation is not without challenges. Its lack of seasonal adjustments and reliance on actual prices without imputation may lead to volatility in its readings.

Additionally, as a newer metric, it lacks the long-term track record and institutional acceptance of the BLS CPI, which remains the Federal Reserve’s primary reference for monetary policy. While some X users argue Truflation is “way more accurate than the market,” its reliability depends on the context and use case.

As The Lending Coach, I specifically value transparency and accuracy, and Truflation’s approach aligns with my commitment to honesty and understanding of my clients’ needs.

While the BLS CPI remains the standard, Truflation’s real-time insights offer a compelling complement for those navigating fast-moving markets.

Market Opportunities for Borrowers and Real Estate Agents

For borrowers, investors, and real estate agents, Truflation’s real-time data can provide a competitive edge in identifying market opportunities, particularly in the housing market. Here’s how:

For Borrowers

Anticipating Interest Rate Trends: Truflation’s ability to signal inflation trends earlier than the BLS CPI can help borrowers anticipate Federal Reserve actions. For example, a post on X noted that Truflation identified a disinflationary trend in December 2024, ahead of the BLS’s confirmation. If Truflation indicates rising inflation, borrowers may want to lock in fixed-rate mortgages sooner to avoid higher interest rates. At Efficient Lending, we guide clients to secure favorable terms early, ensuring affordability in an inflationary environment.
Leveraging Fixed-Rate Mortgages: Inflation benefits borrowers with fixed-rate mortgages, as future payments are made with “cheaper” dollars. Truflation’s real-time insights can help borrowers time their applications to capitalize on this dynamic before rates rise.
Wealth-Building Opportunities: Real estate is a proven hedge against inflation, as home values often rise faster than the CPI. Truflation’s data can help borrowers identify periods of accelerating inflation, signaling a strong time to invest in property to build long-term wealth.

For Real Estate Agents and Investors

Market Timing: Truflation’s daily updates allow agents to spot inflationary trends that could affect housing demand and pricing. For instance, if Truflation signals rising inflation, agents can advise clients to act quickly before higher mortgage rates reduce affordability.
Rental Market Insights: During inflationary periods, rental prices tend to rise due to increased demand and limited supply. Truflation’s granular data can help agents identify markets where rental demand is surging, enabling them to guide investor clients toward high-return opportunities.
Client Education: Agents can use Truflation’s transparent data to educate clients about market conditions, building trust through clear, data-driven advice. This aligns with Efficient Lending’s value of explaining the nuances of mortgage and real estate decisions to empower clients.

Recent Results and Context

As of July 2025, Truflation reported a U.S. inflation rate of 1.82%, compared to the BLS CPI’s 2.7% for the 12 months ending June.

This discrepancy suggests Truflation may detect deflationary or disinflationary trends faster than the BLS, potentially giving borrowers and agents an early warning to adjust strategies.

For example, a lower Truflation rate could signal a window to secure lower mortgage rates before the market catches up.

How The Lending Coach Can Help

I believe in building lasting relationships based on trust, transparency, and education.

Whether you’re a borrower looking to secure a mortgage that fits your unique needs or a real estate agent seeking to guide clients through a dynamic market, I’m here to help.

By staying informed about tools like Truflation, I can provide timely advice to help you capitalize on market opportunities and build generational wealth through real estate.

To learn more about how inflation trends affect your mortgage or real estate strategy, please do reach out to me here…

Ready to take the next step? You can set up an appointment with me here…

Sources:

Truflation.com
Bureau of Labor Statistics
GIS Reports Online
Arrived.com
Investopedia
Posts on X

Why Waiting to Buy a Home Could Cost You More Than You Think

July 21, 2025 / Tom Bonetto

In today’s uncertain market, it’s easy to understand why many would-be buyers are pressing pause. Headlines talk about rising interest rates, affordability challenges, and fears of a housing bubble.

But while the idea of “waiting for things to get better” might feel safe, it can quietly cost you thousands—and delay your long-term wealth goals.

As a mortgage coach, I work with buyers every day who are trying to make the smartest financial decisions possible. The truth is, and more often-than-not, waiting isn’t the money-saving move people think it is.

Return on Investment

Let’s break it down simply. When you delay buying a home, you’re not just waiting—you’re most likely renting in the meantime. And rent isn’t just a monthly expense; it’s a payment with zero return on investment.

Meanwhile, home prices have historically risen over time. Even if appreciation slows, homes tend to gain value over the long run. So while you’re waiting for rates to drop or for a “perfect time” to buy, the price of the home you want may continue to climb.

That home that costs $450,000 today could easily cost $480,000 next year—and now you’ve missed out on both price and equity growth.

Mortgage Rates

Another key factor? Interest rates are unpredictable. Many buyers assume that mortgage rates will drop significantly soon—but the truth is, no one can accurately time the market.

If rates do drop later, the good news is you can refinance. But if they stay the same or go up further, you’ll have missed out on today’s pricing and rates. Acting now gives you the power of choice, not dependence on something out of your control.

Building Equity – Now!

One of the most overlooked advantages of buying sooner is building equity right away. Every month you own your home, you’re putting a portion of your payment toward your future.

That equity can later be used for renovations, investing in more real estate, or consolidating higher-interest debt. You’re not just buying a place to live—you’re making a step toward long-term financial security.

Options That Can Help

There are also smart tools available right now that can help make buying more affordable in today’s market. I regularly coach clients through strategies like temporary rate buydowns, seller credits, and customized loan structures that ease the initial payment and create a stepping-stone to refinance later.

These aren’t one-size-fits-all tactics—they’re tailored plans that align with your short- and long-term goals. That’s where having a trusted lending coach in your corner really makes a difference.

Long Term Benefits

Remember, buying a home isn’t just about timing the market—it’s about timing your life. If your job, family, or financial picture says you’re ready, then the right time might be now.

The sooner you step into homeownership, the sooner you start creating stability, tax benefits, and equity growth for yourself—not your landlord. There’s real opportunity in today’s market for those willing to look past the noise and take action with guidance.

In Conclusion

If you’re unsure whether now is the right move, let’s talk…and you can reach me here. I’ll walk you through the numbers, talk through your goals, and we can build a plan that makes sense.

My role is to coach you toward the smartest mortgage decision for your future. Let’s make sure waiting isn’t costing you more than you realize.

Why Homeownership Is Still Worth It—Even Beyond the Finances

July 14, 2025 / Tom Bonetto

In today’s market, many buyers are asking: “Is homeownership still worth it?” With rising costs and economic uncertainty, it’s a fair question.

But let’s pause for a moment—because homeownership has never been just about the money. In fact, recent studies show that the emotional, mental, and lifestyle benefits of owning a home are among the top reasons people choose to buy.

grayscale of man woman and dog on window

From mental health benefits to stronger communities, homeownership offers more than just a return on investment—it offers a better quality of life.

Here’s what the research says—and why it still makes sense to consider homeownership, even in a complex market.

Homeownership Improves Mental Well-being

A study from Habitat for Humanity found that 57% of homeowners report feeling more secure, stable, and happier in their lives than when they were renting.

According to a survey from the National Association of Realtors (NAR), 93% of homeowners say owning a home makes them feel proud.

The Journal of Epidemiology & Community Health reported that homeowners experience lower levels of psychological distress compared to renters.

When you own, your home isn’t just a space—it becomes a place of safety, peace, and personal identity. That matters, especially in times of uncertainty.

You Have Full Creative Control

Homeownership means freedom. Want to paint your kitchen teal? Go for it. Need to build a nursery or create a meditation space? You can. According to a Bank of America Homebuyer Insights Report:

74% of homeowners say they value “having control over their living space” as one of their top reasons for buying.
This same survey found that renters ranked “freedom to customize” as a top motivator for wanting to buy.

That ability to express yourself and shape your space fosters deeper satisfaction and comfort—something many renters say they’re missing.

Privacy and Peace Go Hand in Hand

When you own your home, you often gain more personal space, more privacy, and less exposure to external disruptions (no more surprise maintenance calls or upstairs neighbors at 3 a.m.).

According to the Urban Institute, one of the biggest complaints among renters is lack of privacy and unpredictable disruptions—key stressors that impact daily life.

Owning your home allows you to create a stable, peaceful environment tailored to your needs—and that affects everything from sleep quality to productivity.

You Become Part of a Community

welcome to our home print brown wooden wall decor

When you buy, you’re not just investing in a house—you’re planting roots. A Pew Research Center study shows:

Homeowners are more likely to volunteer, vote in local elections, and engage with their neighbors.
Communities with higher homeownership rates tend to have lower crime rates and more stable school systems.
This sense of belonging and connection to a neighborhood is something that can’t be measured in dollars—but it adds lasting value to your life.

You Gain a Deep Sense of Accomplishment

Finally, homeownership comes with an emotional milestone: the feeling of “I did this.”

According to Realtor.com, first-time buyers describe owning a home as one of the most rewarding life experiences—comparable to graduating college or getting their first job.

It’s a personal victory. It represents hard work, resilience, and the beginning of a new chapter—something renting often doesn’t offer in the same way.

Final Thoughts: Why It’s Still Worth It

Yes, it takes patience and strategy to buy a home in today’s market. But the non-financial rewards—from emotional wellbeing to life flexibility—remain stronger than ever.

In a world full of uncertainty, a home provides grounding, purpose, and peace of mind.

Want to talk about whether homeownership makes sense for your life—not just your finances?

Let’s connect

I’m here to help you explore your options and take the next step with confidence.

Lending Coach Podcast – 2025 Mid Year Real Estate and Mortgage Forecast Review

July 7, 2025 / Tom Bonetto

Well, 2025 is past the halfway point, so how does my original forecast look relative to what’s transpired in the real estate and mortgage world?

And what can we expect moving forward into the 2nd half of 2025?

I’d invite you take a listen!

Here’s the link:

Specific Podcast Timestamps:

0:34 – Introduction
2:35 – Interest Rates So Far in 2025 and Real Estate Activity
10:30 – The Fed and Reliable Data – Inflation and Employment
19:50 – US Debt and Inflation
22:56 – Re-visiting January’s Forecast – How Did We Do?
39:40 – What Can We Expect in Mortgage Rates for the 2^nd Half of 2025
40:20 – Can Rates Get to the Low 6% Range? What Might Happen in Real Estate?
41:20 – Pent-up Demand and Home Prices/Buying Opportunities
46:25 – Final Thoughts on the Forecast

I hope you find it interesting, and feel free to reach out directly to me to discuss it further.

As always, you can set up an appointment with me here…

The Lending Coach