How to Buy a Home - Step 4: Managing Debt

You don’t need to be debt-free to buy a home—this episode shows you how to work smarter with your debt, not fear it.

In today’s housing market, waiting to eliminate all your debt before buying a home might actually hurt your long-term financial stability. In this must-listen episode of the How to Buy a Home podcast, we tackle the misunderstood middle child of the Big Three—debt—and explain why managing it strategically can often lead to faster, more affordable homeownership. David Sidoni breaks down the difference between good, bad, and workable debt, clears up damaging debt myths, and shares real success stories of buyers who used modern tactics to qualify for a home loan despite carrying credit cards, car payments, and even $300,000 in student loans.

Whether you’ve followed traditional advice (like Dave Ramsey’s) or are just starting your journey, this episode gives you up-to-date guidance for navigating debt in 2025 and beyond. Learn how to balance budgeting, reduce stress, and take smart steps toward buying—even with debt still on the books.

“You don’t have to be debt free. You don’t even have to be nearly debt free to buy a home. That’s a fact.”

Highlights:

• Why the “debt-free before buying” rule is outdated
• The three types of debt: good, bad, and workable
• How your monthly debt matters more than your total debt
• Success stories: Buying a home with credit in the toilet, medical debt, or $300K in student loans
• Why DTI (Debt-to-Income ratio) matters—and how to work with it
• Tips for using budgeting apps, simulators, and custom plans to balance saving and debt reduction
• What to do with a windfall: Should you save it or pay off debt?
• The truth about student loans, consolidation, and PMI
• How working with the right team unlocks real options

Referenced Episodes:

• 167 – Christina & Sean: First in Their Family to Buy a Home
• 187 – Dr. Kendall: Psychologist Turned First-Time Buyer
• 186 – John & Richard: Buying With $300K in Student Loans
• 388 – The Playbook VOL. 1 – The Rent Replacement Strategy
• 389 – The Playbook VOL. 2: Your Last Lease Ever
• 394 – The American Dream Is Dead
• 371 – The Best Budgeting Apps for Homebuyers
• 198 – PMI Is a Privilege
• 216 – PMI Is Still a Privilege And Still Not The Devil

OFFICIAL 2025 EPISODE GUIDE

Connect with me to find a trusted realtor in your area or to answer your burning questions!

Subscribe to our YouTube Channel @HowToBuyaHome

Instagram @HowtoBuyAHomePodcast

Tik Tok @HowToBuyAHome

Visit our Resource Center to "Ask David" AND get your FREE Home Buying Starter Kit!

David Sidoni, the "How to Buy a Home Guy," is a seasoned real estate professional and consumer advocate with two decades of experience helping first-time homebuyers navigate the real estate market. His podcast, "How to Buy a Home," is a trusted resource for anyone looking to buy their first home. It offers expert advice, actionable tips, and inspiring stories from real first-time homebuyers. With a focus on making the home-buying process accessible and understandable, David breaks down complex topics into easy-to-fo