mortgage and student loans
Started by brains
Get help with your application
Use all the free resources available to you from SDN: articles, guides, expert advising, forums discussions, and school research.
To my knowledge it only affects with your assets. I haven't done a fasfa in a year or so but go through and ask if they ask about your house (I believe they do). I don't think it would affect you that much as they would assume your significant other would taken on most of the burden (while you are alloted a bit for housing it might not cover all of the mortgage).
Go through the form and check it out, can't hurt anything.
🙂
Go through the form and check it out, can't hurt anything.
🙂
Owning a house is a good thing, because you don't count your primary residence as an asset.
Advertisement - Members don't see this ad
when the lenders/banks take into consideration of assets owned by your co-signer, how would the co-signers' assets affect the amount of money i can loan out?
mostly they will look at their debt to income ratio. If its not between say 30-45 you're going to have issues. DTI (debt-to-income) is all debt obligations on their credit report divided by gross money they make a month.
I have a similar question to the original post:
I haven't yet, but I plan on purchasing a home before I start school, probably around Mar, Apr, Mayish. But, I need to start with the whole financial aid application stuff. Because it would help my FA award to have my new home included, do I have time to wait until I close on a home? Is it possible to go ahead and apply for financial aid and just make some assumptions about what my living standards will be?
Which brings up another question I have. I don't want my new FA award to show up on my credit when I'm applying for a home loan. When you apply for FA do they wait until the aid is dispersed until it shows up on your credit?
Oh, and one more question (I'll be pleasantly surprised if someone takes the time to answer all of my questions! Thanks in advance). Since I'm looking at needing some private loans as well, do these get approved and dispersed along the same time table as gov. loans, or immediately? I am really going to need some extra cash to move, etc. My school informed me that they won't disperse the first quarter of FA until after orientation!😱
HELP!
I haven't yet, but I plan on purchasing a home before I start school, probably around Mar, Apr, Mayish. But, I need to start with the whole financial aid application stuff. Because it would help my FA award to have my new home included, do I have time to wait until I close on a home? Is it possible to go ahead and apply for financial aid and just make some assumptions about what my living standards will be?
Which brings up another question I have. I don't want my new FA award to show up on my credit when I'm applying for a home loan. When you apply for FA do they wait until the aid is dispersed until it shows up on your credit?
Oh, and one more question (I'll be pleasantly surprised if someone takes the time to answer all of my questions! Thanks in advance). Since I'm looking at needing some private loans as well, do these get approved and dispersed along the same time table as gov. loans, or immediately? I am really going to need some extra cash to move, etc. My school informed me that they won't disperse the first quarter of FA until after orientation!😱
HELP!
Your student loans don't show up on your credit report until after they're dispersed.
As for when to file, you need to check with your school. Earlier is generally better, and you might miss some school deadlines if you wait too long. I don't think buying the house will change things much unless you have a lot of money sitting in your bank account that you're planning to put toward the house. Even then, the FAFSA doesn't include your assets if your income is low enough. For that I'd recommend checking out the financial aid links thread above -- there is a link there to the formula for calculating your EFC.
Private loans generally are dispersed the same time as your other school loans since they're sent to the school first.
As for when to file, you need to check with your school. Earlier is generally better, and you might miss some school deadlines if you wait too long. I don't think buying the house will change things much unless you have a lot of money sitting in your bank account that you're planning to put toward the house. Even then, the FAFSA doesn't include your assets if your income is low enough. For that I'd recommend checking out the financial aid links thread above -- there is a link there to the formula for calculating your EFC.
Private loans generally are dispersed the same time as your other school loans since they're sent to the school first.
Does anyone know if a gradPLUS co-signer will be negatively affected if they want to get a mortgage later? Let's assume a case where, over the 4 years of dental school, this person co-signs for over 120K in student loans, but then try to take out a mortgage. Will this hurt their chances of getting a good rate, etc?
Yes it will. Co-signers will be responsible for the debt so it will affect them. It will be lender dependent though. Some lenders might be a bit more lenient than others depending on the "underwriting" guidelines since it is not their debt. Lenders might accept a letter from the student or proof that the loans are not theirs, but its the same as any co-signed loan, the responsibility still lies with you if the borrower backs out.
My question is pretty similar to this thread.
I have a big mortgage (live in a big city, houses are $$$$$). I have not been accepted yet, so I could be attending school here or have to move elsewhere.
Does having a big mortgage limit the amount you can borrow for school?
What if you have to move for school and rent the house out while out-of-state, how does that change things?
If I move and keep the house as a rental, I would still need to come up with approx. $600/mo. in excess of the rent to make the mortgage. In this case, should I just sell the place?
I've heard/read there are maximum you can borrow for school. How is that maximum determined?
Thanks for your help!
I have a big mortgage (live in a big city, houses are $$$$$). I have not been accepted yet, so I could be attending school here or have to move elsewhere.
Does having a big mortgage limit the amount you can borrow for school?
What if you have to move for school and rent the house out while out-of-state, how does that change things?
If I move and keep the house as a rental, I would still need to come up with approx. $600/mo. in excess of the rent to make the mortgage. In this case, should I just sell the place?
I've heard/read there are maximum you can borrow for school. How is that maximum determined?
Thanks for your help!
Each school determines the maximum amount of Stafford + GradPLUS loans you can take out. It is enough to cover the school's determined cost of attendance, including tuition, fees, and what the school decides your living expenses should be. Anything above this you'll have to give the school a good reason to increase the COA for you or you have to go private.
If you are lucky. Above the CoA private loans are a rare occurrence these days. Most private loans must also be within the CoA now.
Thanks for the info, I really appreciate it!
sumo
If you end up moving out of town for medical school, I would just sell the house. It's not worth it to eat $600/month on the off chance the house will appreciate enough to make up for that in the 4 years you are in med school. Also, you won't want to be dealing with this kind of crapola (being an absentee landlord) while you are a med student. Trust me.
If you end up moving out of town for medical school, I would just sell the house. It's not worth it to eat $600/month on the off chance the house will appreciate enough to make up for that in the 4 years you are in med school. Also, you won't want to be dealing with this kind of crapola (being an absentee landlord) while you are a med student. Trust me.
Advertisement - Members don't see this ad
I just talked to FAFSA. They said you do not report the house you live in, so your mortgage should not be a factor in qualifying for aid/loans. But if you end up moving for school and start renting out your house, you must then report it as an asset and it WOULD affect your aid/loans.
Similar threads
