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BUYING A HOME AS A STUDENT
There are numerous motives for purchasing a house
while attending college.
Developing equity in your
home is a fiscally smart thing to do compared to paying
rent.
Simple benefits of being a homeowner while a student!
Owning a home will allow you to
develop a strong credit
rating that will make it simpler for you to get approved
for loans and credit in the future. You will also earn
money from the property's increase in value over time.
As a homeowner, you will likely receive an interest rate
tax deduction from the property.
** You will also
save money as a homeowner, instead of renting.
Have no credit? Have your parents co-sign for you!
Although Star Loan Services specializes in helping
people with
no credit obtain loans for home purchases,
you may want to consider having your parents co-sign
your home loan. Your parents may be more than willing to
help you obtain a mortgage. Not only will they be
assisting you in acquiring financing that you would not
normally be able to obtain on your own, as loan
co-signers they will be helping you build your credit
history.
What happens if I don't make payments, and my parents
are the co-signers?
As loan co-signers, your parents take responsibility
of making mortgage payments if you fail to do so. If
they do not, there credit rating is going to be
adversely effected the same as if the loan was in their
name.
Your parents will also be 100% responsible of making sure
that the lender is paid even if you
declare bankruptcy
or your home is sold in foreclosure. We suggest that you
and your parents take a look at the section on
co-signing loans to learn more about the
responsibilities of being loan co-signers.
Some more ideas....
Maybe you are not ready to own a home. Perhaps your
parents are looking to do some investing. They may want
to buy a house, and have you live in it and pay rent to
them. Not only will they be helping you reduce your cost
for housing while in school, they will enjoy the
tax benefits of owing a home.
Another option is to
buy a condo. A condominium is a great alternative to
buying a house, allowing you to eliminate paying rent!
What are your goals?
Are you looking to
build your credit? If yes, then
owning a home is not your only option. Applying for a
no
credit student car loan,
personal loan,
computer loan or
applying for a credit
card with no credit are other options that have far less
responsibility attached to them.
If you have extra money and are looking to invest, then
buying a home is a good idea. Having your parents
co-sign for you may help you with the interest rates you
receive, but it is not necessary when
looking to obtain approval for first time home loans
with no credit with Star Loan Services.
In conclusion, regardless of what your ambitions, owning a
home is a big responsibility. We offer many articles
related to home buying that will not only help you
understand the buying process, but will aid you in
obtaining a mortgage at a low rate.
Become a smart
buyers by reading the
house purchasing guide.
Understanding the housing market will help you
choose the right area for living for your needs. It is
also important to understand the difference between
buyer's market or a seller's market.
Before you
make an offer on a house,
you should familiarize yourself with the
proper questions to ask.
Calculating Mortgage Payments
Determining if Your Salary is Enough for the Loan You Want
Evaluating the Costs of Homeownership |
