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Mortgage Question for recent college grad

Hello,

I recently graduated college and am thinking about buying a townhouse. I was hoping that someone on here could help answer a few questions that I have! With all of my student loan debt, it is very unlikely that I will qualify for the loan on my own. However, my grandparents are willing to purchase the property with me. Could they purchase the house with my name on it and only put 10% down? If that's the case, I'm aware about mortgage insurance, but it's my understanding that if they buy the house and don't live there, it's considered an investment property and you must put at least 20% down. Is there anyway we could just use all of our combined information and have me live there with only 10% down? Any help or advice would be appreciated!

Thanks, 

Alex
  • June 19 2012 - US
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Answers (2)

Your grandparents would be able to be on the loan with you as non-occupant co-borrowers.  It is done all the time.  This would be an FHA loan and the downpayment would be as low as 3.5%. 
  • June 19 2012
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I suggest that you talk to loan officers at two local banks to determine what you can afford on your own. I it's not good to saddle you grandparents with your debt. However, if your grandparents can afford to give you a gift of cash, that's a different story.
  • June 19 2012
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