FIRST OF ALL, I WANT TO THANK YOU FOR SERVING OUR COUNTRY. I AND MANY OTHERS DON'T GET AN OPPORTUNITY TO TELL YOU HOW VERY MUCH WE APPRECIATE YOUR DEDICATION AND SACRIFCE.
FROM A LENDERS STAND POINT, UNLESS YOU PLAN ON PAYING CASH FOR THE PROPERTY YOU SHOULD MAKE SURE THAT THE PROPERTY IS WARANTABLE. THIS MEANS THAT IT NOT HAVE MORE THAN A MINIMUM OF 50% OF THE UNITS MUST BE OWNER OCCUPIED. THIS VARIES WITH THE TYPE OF LOAN. GETTING A LOAN ON A NON-WARANTABLE CONDO IS MORE EXPENSIVE TO YOU AND MORE DIFFICULT TO ATTAIN.
DO YOU CURRENTLY HAVE A VA LOAN ON YOUR HOME? YOU CAN GO TO MY WEBSITE AT: TIMHUNKE.COM AND FIND OUT A BIT MORE.
BEST OF LUCK AND AGAIN....THANK YOU.
If you are still in market you might be interested in taking a look at my condo I have for sale. It's not within walking distance of UT, but still in a great area not far from there and only about 1/2 block off the bus line. The complex is small and has a good floorplan that would support a roommate situation.
Betina Foreman, Realtor
Keller Williams Realty
1801 S. MOPAC, Suite 100
Austin, TX 78746
Excellent idea! I bought a house when my little brother was a student at UT. I only wish I hadn't sold it. Think of this. Turn your IRA into a self directed IRA and buy the house within your IRA. If you get a duplex, you can collect rent on the other side, tax free, while your son is there. Meanwhile, the property will increase in value-pretty much assured, due to the fact that this is a strong buyer's market. Theoretically, this concept could be a financial planning tool for your retirement while providing a residence for your son. I work with an agent whose specialty is REO/Foreclosure properties. I like to refer to him because he is so "on top of that part of the market." If you want to pursue this, let me know. We will get the ball rolling. You are on the right track, Mike! Sharon
Best wishes to you on your deployment. Thank you for serving our country.
Buying a condo is a good idea. Make sure that the condo is a warrantable one it makes getting a loan easier.
You might consider a 5 or 7 yr ARM. I did one for a family in College Station and it worked out well since the rate was less and if it takes your son 4 yrs to graduate and then go on to graduate school you have an extra year that is covered.
FYI-There is such a thing called "kitty condo loan" for lack of a better name, basically Mike is co-signer for this son that is a student. So mike's son can purchase the property & start building equity along with receiving the tax credit. Check into it with a lender, it's wonderful loan.
I have been selling condos in the area for about 11 years or so. I actually live pretty close to campus and have show most of complexes.
If you need any help let me know.
Good questions regarding UT Properties. There are currently 29 properties that at are at least a 2 bedroom unit and all under $199,000. With the exception of 2, they are all have 2 bathrooms as well. The units are also located in the real estate area known as UT which is clustered around the University.
Buying a property while your son is a freshmen is a good investment option. I have helped many families in your situation accomplish the same thing. Most of these 29 properties are in the low $200 per sqft with a couple at 197 a sqft.
I would be glad to send you the specifics of these if you like.
Ritch Haenke, Realtor
Coldwell Banker United
But, have you figure out how you will be purchasing?
The agent before me is assuming your son will be purchasing the property... and assuming he will meet the requirements to get the first time home buyer credit; which can be up to $8K.
However, as a mom of 2 college kids, when I think of doing this, I am not thinking of putting it into the names of my college kids; simply because I assume my kids will move out and move on after school - and I will keep the property as an investment for some time. Maybe that's your plan, or maybe not.... If this is the route you will be going, consider using funds through a version self directed IRA. A typical self directed IRA can purchase property, but not property your son can live in. However, with the Safe Harbor variation, it seems your son can reside in the property. The web site below will tell you more.