Morty the Mortgage Guy - Going to College
So you’re a student. You probably live in a less than great apartment but pay an outrageous amount in rent just so you can hear the sink drip and the floor creak. Or, maybe you live in one of new fancy schmancy high rises that seem to be popping up on college campuses all over the country. In this case, you pay an outrageous amount of money in rent just to be able to hear your neighbor’s awful music and wait for the elevator.
Whatever your current living situation is, you could be graduating college with a degree, home equity, and established credit! Lenders want to know you can afford the mortgage, of course, but it doesn't matter that you are a student as long as you can afford it and are a good bet, when it comes to repayment. And, you can start your new adult life knowing that you are investing in your future!
If you do not have adequate income on your own, you may still qualify for a mortgage with a co-signer. Parents or a significant other might be able to co-sign if they meet the qualifications for the loan and earn enough to afford the mortgage. You might qualify for a FHA loan that requires only 3.5 percent down and will allow the down payment to be a gift. Such an FHA loan has acquired the nickname "kiddie condo loan" and has been used by parents to finance their student's college pad. Parents and students both can invest in the home rather than throw money away on rent.
Before you decide to buy a home, make sure you can commit to the location for a few years and that your school does not require you to live on campus. Otherwise, the home may feel like a trap, since it will be harder to move on a dime. You will also need to have money or help to pay for any unexpected upkeep of the home. You might be able to rent out some of the rooms to other college students to help cover the costs of your mortgage payment. And when you graduate, you will find that college towns always have people coming and going, and new folks looking for housing, thus making it an attractive place to own real estate.
Well, I'm sure you have some questions, so, here's what you do. Click on 'Contact a Loan Officer' and someone in your area will reach out pronto! Or, if you're ready to get started, click on the 'Apply Now' button that's a bit lower and fill out some information to get your PreQualification started!