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Tiredofrenti…, Home Buyer in Urbandale, IA

Lending to Grad Student?

Asked by Tiredofrentingapts, Urbandale, IA Thu Jan 1, 2009

Here's my situation:

- Grad Student - will graduate in 3 years.
- Married, 2 kids
- Income comes from PT job on campus, student loans.
- Credit score fair, due to student loans, no bankruptcies. Score around 615 last I checked.
- I can make a down payment about 1-2k.

Found a property. Older home, but in good condition. Sale price would be around 105-108k.

Is this something I could realistically pursue? Seems like my 3 bedroom apartment rent is comparable to a small homes' mortgage payment.

Thanks.

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Answers

2
Julie May had some very good points especially about borrowing money from family and then paying them back with the first time buyer tax credit. Things have gotten even better since she posted her answer. The government is now offering an $8,000 first time home buyer tax credit that does NOT need to be paid back.
Web Reference: http://www.Trummteam.com
0 votes Thank Flag Link Sat Mar 14, 2009
Dear Grad student,

I think it's great that you are looking to purchase a home! Paying rent every month gets you nowhere financially, whereas owning a home builds equity to help you build your wealth.

A few years ago I would have said, "Of course you can get a loan!" And today I guess I'm saying the same thing, although there are a lot more restrictions in place now. My advice...call several lenders including your bank, and some other reputable mortgage companies and tell them your situation. The lenders want your business and will sometimes find creative ways to get you into a house, even with only $2000 to put down. Another thought is to ask your parents, grandparents, etc. for a loan for a down payment. Also...right now there is a $7500 tax credit that first time homebuyers can qualify for. So you could get a short-term loan from a relative, only to pay them back when you get your credit. Just ideas.

If you'd like more information, or would like the names of some reputable lenders in the area, please visit my website and give me a call.

Julie May, Associate Broker
Prudential Ambassador Real Estate
0 votes Thank Flag Link Thu Jan 1, 2009
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