[spex x]

First, have you run your credit report? Having a bank account and student loans is a credit history, so don't sell yourself short.

Second, a $15k loan at 3.75 stretched over 20 years is having very very little impact on your monthly debt-to-income ratio, so it DOESN'T MATTER. As for debt, the bank doesn't so much care how much you have in terms of dollars, they only care how much that debt is costing you each month (i.e., if you've got $2 million in debt, thats fine as long as your income is sufficiently high to support all that debt).

Ok, so say you can save up $15,000 in one year. The question is whether its better for you to spend $15k on our student loans or spend $15k on a down payment. The bank will BY FAR prefer you to put that money into the down payment. Down payments are absolutely greater protection for the bank whereas lower debt-to-income ratio only implies greater protection - it demonstrate a better ability to pay, but the bank still has to rely on you to actually make those payments. When you put the money down as a down payment, the bank is more protected in the case that you default and they have to foreclose and resell the property, becaue their basis is lower.

Third, student debt is considered 'good' debt by banks. They look at it kinda like an investment that is paying monthly dividends (higher salary). So don't worry about it. Now if it were credit card debt or car loans or something, that'd be different. But student debt is ok as long as you have a healthy DTI.