In the high-demand markets of Wilmington, Wrightsville Beach, and Leland, the path to homeownership often intersects with the reality of student loan debt. As we move through 2026, the intersection of rising conforming loan limits, now reaching a baseline of $832,750, and evolving federal student loan repayment structures has created a complex landscape for Debt-to-Income (DTI) qualification. For buyers in New Hanover and Brunswick counties, understanding how underwriters calculate these obligations is the difference between a denied application and a key to a new coastal home.

The Shift in Calculation: 0.5% vs. 1%

Historically, the “1% Rule” was a major hurdle for buyers with high student loan balances. Underwriters would default to a monthly payment equal to 1% of the total loan balance if the borrower was in deferment or on a non-amortizing plan. In 2026, the landscape is more nuanced, but product selection remains critical.

• FHA and Freddie Mac advantage: Both currently allow lenders to use a 0.5% calculation of the outstanding balance when the credit report shows a $0 payment or the loan is in deferment. For a professional looking to buy in Hampstead with $100,000 in debt, this shifts the monthly DTI impact from $1,000 down to $500.
• Fannie Mae requirements: Fannie Mae is stricter on documentation. If the credit report shows $0, underwriters typically require documented proof of an income-driven repayment (IDR) payment amount. Without that documentation, they commonly apply 1% of the balance or a documented fully amortizing payment. For those aiming for a conventional loan on a beach property in Oak Island, this distinction is vital.

The 2026 “RAP” Plan and IDR Realities

A significant shift occurring in July 2026 is the implementation of the Repayment Assistance Plan (RAP), which reshapes income-driven repayment (IDR) for new federal loans and changes what servicer documentation looks like in the years ahead.

For the coastal buyer, the insider strategy is leveraging documented monthly payments. If you are on an IDR plan where your payment is $0, some loan products, particularly FHA, may allow that $0 payment to be used for qualification if it is documented by the servicer. However, with the transition to RAP, underwriters in Onslow and Pender counties are scrutinizing the longevity of these plans. If your student loan is slated for a step-up in payment shortly after closing, it can trigger a manual underwriting review that threatens your debt-to-income ceiling.

Strategic Tactics for the Coastal Buyer

To maximize your purchasing power in competitive areas like Surf City or Southport, a proactive approach to debt is required:

• Consolidation deadlines: If you hold Parent PLUS loans, mid-2026 consolidation deadlines can be critical. Missing the cutoff can restrict repayment-plan options and force a higher standard-payment calculation that spikes your DTI.
• The DTI buffer: Coastal homes often carry higher Homeowners Association (HOA) fees and flood insurance premiums. Because these are included in your housing expense and total DTI, keeping your student loan impact low preserves room for the recurring costs that are common in Southeastern NC real estate.

A Strategic Partner in Your Property Journey

Navigating the financial intricacies of 2026 mortgage guidelines requires a partner who understands both the local market and the technicalities of loan qualification. At Aspyre Realty Group, we recognize that every financial profile is unique.

We are experts in listening and communicating people’s wants into homes that work for them. Rather than a one-size-fits-all approach, we act as a strategic guide, helping you align your debt profile with the right property in Wilmington, Topsail, or Leland. We ensure your transition to the coast is backed by sound financial planning and local expertise.