Buying SFR in Grad School; Loan Qualification w/ Student Loans

1 Reply

Hey all--I've been crunching some numbers lately and am interesting in others' takes on my situation. If I do go this route, it will be my first home purchase. 

Backstory

  • Moving to Austin, TX in August where I'll reside for at least 2 years (during school.
  • GF living with me and paying half of rent
  • 1/1 condos/apartments in Austin are going for ~$1300/mo 
  • I'll have $15K in savings starting school and will be on loans to fund tuition costs

Cost/Benefit

  • If I buy, that $28K lost from renting becomes equity that is mine forever
  • By owning RE in Texas, I'll qualify for in-state tuition my 2nd year and will save $18K
  • By purchasing a property between $175-200K, I project my monthly mortgage will be in the realm of $800-1000 total. This equates to $150-250/month that BOTH my GF and I will save. 

After running the numbers, it seems as that buying potentially carries a $50K benefit over renting for the 2 years while I am in school. My concern is financing the property--I will have ~$15K for my downpayment but ideally would target an FHA 3.5% down product and save the remaining cash for anything that might come up. I have a solid job right now but will be leaving my job in August to move and go to school. If I try to qualify for the FHA loan, will I hit any roadblocks in terms of not being employed while in school? I'll be paying the mortgage with the student loan money I would have put towards rent anyhow. Upon graduation, I would rehab and flip (if leaving Austin) or potentially rent it out to future college students. Thanks in advance for any tips on this deal.

Hi Corbin,

First, welcome to Austin.  My nephew is attending UT and doing something similar to become an in-state student.  Just that part alone makes sense to buy the place.  I can put you in touch with my in-house lender who can see what you would be qualified for and talk to you about available grants to help with down payments, as well as other ways to make what you want happen a reality.  I certainly can email you places that would be good investments as well.  Feel free to call or PM me anytime with questions or to set a conversation up with our lender or any lender.  That really would be step one.  

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