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How do I buy a house while in college? Can I?

Right now I am about to start college in a about 8 months. I got it suck on my head that I wish to buy a house while I go to college.  I have done some of the basic math involved and figured that I could work 2 part times for about 7 months. That would rake me in about 6K plus 2K I have saved up and about 2K-3K I could get from My parents. So I can most likely muster up about 10-12K by the 8th month. This would be my down payment.

I plan to buy a house with 2+ rooms and a garage. The garage will be converted into a legal bedroom. I plan to live in that bedroom and rent out the house itself. I can most likely get about 1.2k rent from the house and pay up about 200 or 300 myself to fill in the rest of the mortgage. So I think I can cover a mortgage of about 1.5K to 1.7K.
My budget for the house would be at most 150K I think. 130K for the house itself and 15K to make the garage into a room and 5K for costs I have yet to foresee.

I have a friend that can help me with the actual real estate purchase and my parents are willing to help cover the costs that may occur during ownership.
Am I missing something of importance here?
I plan to buy in california. In the Pasadena region if I get accepted into Caltech. Elsewhre but still in california if I don't.

One thing that concerns me is that I have literally no credit, seriously as in my name is not even on the system. I don't know how much credit I can build up in 7 months. I plan to get a bank account within a month and get a credit card to make regular purchases with to help my credit. Will this be enough to get myself a loan with decent interest rates?
  • December 26 2013 - US
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Answers (2)


Hi,

First of all, congratulations on your decision to become a first-time homebuyer! Also it's great that you have been crunching numbers on your own - I'm sure your lender will appreciate your time and effort.

I'd suggest you sit down with a lender (or a few) and discuss the different loan options you have. Hopefully your realtor can refer a few good lenders to you who can work with your situation. I hoping you get that acceptance letter to Caltech soon, but I have to say that 150,000 for a home in the Pasadena area (or most parts of California) will probably not be easy to find.
I would recommend you familiarize yourself with the costs of maintaining a home, as well as the legal and financial aspects of being a landlord. Also, if you move out of the area after graduating in four years, you may want to consider what will happen with the property.

Good luck and hope you are a homeowner soon!
  • December 27 2013
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*accidental double post.*
  • December 26 2013
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