Home Buying in Detroit>Question Details

First Time H…, Home Buyer in Detroit, MI

can I use a student loan as a down payment on a house.?

Asked by First Time Home Buyer, Detroit, MI Tue Mar 15, 2011

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I had a buyer who used her student loan money as a downpayment. Her mortgage lender was aware of where the funds came from. She did close on the loan. It is possible but you may want to check with your lender. In this market this goes on more often than not. There are other sources of downpayment money such as a taking Hud homebuyer counseling classes, http://www.hud.gov/offices/hsg/sfh/hcc/hcs.cfm?webListAction… I do understand that Michigan State Housing Development Authority also has a first time homebuyer down payment program, http://www.michigan.gov/mshda/0,1607,7-141-45866_45870-172114--…
0 votes Thank Flag Link Tue Mar 15, 2011
Probably not however confer with mortgage broker

Lynn911 Dallas Realtor & Consultant, Loan Officer, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
0 votes Thank Flag Link Tue Mar 15, 2011
First Time it would be very difficult for any underwriter to allow you to do this. Down Payment money if newly deposited will be sourced. I don't believe ANy mortgage company would llow this, nor do I suggest it. Good Luck.
0 votes Thank Flag Link Tue Mar 15, 2011
Hello First Time Home Buyer,
As a real estate agent as well as a mom with 2 children in college, I have to say that unless you are enrolled and taking the required # of credits in the school from which the loan pertains to then the lender will not give you the loan. Proof is needed that you are attending the school with the minimum # of credits expected to utilize the funding.
So...I have to say the answer is no.
Hope that helps.
Good luck to you!

Laura Feghali
Prudential Connecticut Realty
0 votes Thank Flag Link Tue Mar 15, 2011
what if you are taking the req credit hours?
Flag Sun Apr 19, 2015
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