Current students bought a house

[preludexl]

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I was wondering if a student can buy a home and pay for it thru loans. It makes sense to own a house and sell it later than to pay rent and not own it. I have enough for a down payment and some change to help make mortgage payments, along with the FA allocated to housing, plus an extra student loan or 2 thru private loans, would more than be enough according to my calculations. Question is, has anyone currently enrolled, and without a significant other, gotten a mortgage?

 

[ItsGavinC]

I'm answering this from second-hand knowledge, although the information is valid. My family and I are in an apartment, but I have MANY classmates (probably 12 out of 54) that have built homes this first semester.

Many others have purchased homes that were already on the market (~6 of 54 classmates).

They've all had success with getting loans to qualify as income for mortage purposes.

Building homes has turned out to be quite an excellent investment for my classmates that have done so. Rather than paying $600-900 for rent, they are now in 1,400 sq. ft. homes (not huge but nice) with 3-4 bedrooms, 2 bathrooms, and 2-car garages. Their mortages are running $600-700 a month, and their homes are increasing in value at an alarming rate ($5,000-7,000 per semester).

More than that I don't know--I'm VERY unfamiliar with this type of stuff, but I do know it is doable.

 

[ShawnOne]

I am surprised your friend was able to qualify his FA as income for buying a house. My first instinct would say its not possible.

BTW, anybody pondering the purchase of a house should consider other associated costs. For example, down payment, brokers fees, loan fees, taxes (including yearly property taxes), maintance, etc.

 

[ItsGavinC]

Originally posted by DaktarSaheb
Hey GavinC,
What you mean by building a new house. I mean they bought the house that contractor was building or they built it on their own .

Sorry for the confusion--they bought homes that contractors were building.

As for what Shawn said, that is very important to consider. The most difficult part for many of my classmates was mustering up a good down payment that would get them to the area they were looking for as far as mortage payments.

 

[spooky42]

Easier to do in Arizona, then in the Northeast.

 

[bitecys]

My wife and I bought a house last April. I am now a D2 at Iowa. We could not use Financial Aid money as income on our loan application. My wife is a high school teacher and as many of you are aware, we are almost poverty level with that salary...and that is before school expenses. Anyway, we are using the housing part of our financial aid as part of the monthly mortgage payment, as well as some of her salary. It all works out in the end.

We are living in a 2400 sq ft house at a mortgage of 650/mo versus living in the 1000 sq ft condo we were last year at 750/mo. Obviously utilities are higher, (250 for heating last month) but we can manage. I would suggest looking into it, if you can afford a decent down payment.

 

[ItsGavinC]

Originally posted by bitecys
We are living in a 2400 sq ft house at a mortgage of 650/mo.

Not bad at all! A lot of people never live in a home that big in their entire lives, much less during school.

One of the perks of living in an area with a lower cost of living.

 

[bitecys]

Also, we are in a small town (3500) which is 20 miles east of Iowa City, so that really cuts the cost of living.

 

[Temple2007]

I live in Philladelphia and quite a few Dental students in my class bought homes. Im planning on buying a home next year. Buying is the way to go at temple not only do you get instate tution (saves 40,000 for the 4 years) you get to sell your house at the end of the 4 years. The guys i know with houses all have spouses who dont work and some of them have kids so it is do able in Philly.

 

[Dr.BadVibes]

Hey Temple2007.....how much are condos in like the Roxbourough, Manayuk, East Falls, or Summit Park area?

 

[Temple2007]

Condos in these areas run from around 90,000 and up. Just be careful with condos because they have a condo fee tacked onto your monthly payment. I have a friend who bought a house in Upper Darby for 89,000 2 bedroom house. He like living out there because he can just catch the subway to the school. I know a guy who bought a house for like 40,000 ( not to sure about the neighbor hood). Roxbourgh is where i live now at Summit Park Apartments. Its a great neighborhood however property is a little more expensive here.

 

[Dr.BadVibes]

hey Temple2007....I just sent you a private message....

 

[Dr.BadVibes]

Im hoping to buy something that is livable for about $60000-$70000 in the Roxbourough, Manayunk, East Falls, or Summit Park areas....you think thats doable?

And where exactly is that Upper Darby area relative to Temple Dental?

 

[Brand]

I got a 140k loan for a townhouse in Ann Arbor. Its very doable.