Can I house Hack as a College Student?

Question

Hello People of BP,

I'm currently a college student and am planning within the next two years, to buy and house hack to reduce my monthly living expenses even if its only by a few hundred dollars. I've done some studying and research for my area, but am unsure if I would be able to qualify for a FHA loan to fund my property. I would only have the income of a part timer and I also would have accumulated at least 30 k in student loans. I have a credit of around 740-760 which would qualify me for the better loans, but looking at my DTI, I'm not so sure I do qualify. Any information on the topic would be helpful.

Thank you,

-Cesar R.

Landon Hoon · Answer

Hi Cesar,

Yes, you can house hack as a college student! The tricky part is having acceptable income to get your debt to income ratio down.

One option you could do is to have a co-signer for income qualification. When buying a 2-4 unit property, FHA shoots up the down payment requirement if you have a non-occupying co-signer.

So to house hack with a low down payment using a non-occupying co-signer, a conventional loan with 5% down on a 2-4 unit will be best!

Benjamin Sulka · Answer

Cesar,

Not much more I can add but best of luck to you! I just graduated college this past May and I'm looking to buy my first house hack deal this summer.

Your best bet would be to go talk to some lenders! Get lender recommendations through BiggerPockets or go to local REIAs.

You got this, man!

Noah Bacon · Answer

Hey Cesar!

Will you be a college student in the next 2 years or will you be graduating in that time?

I was in a very similar spot a few years ago when I was in college and ultimately waited until I had an offer letter post grad. I was able to use the offer letter from my future company as income verification and was able to qualify for a conventional mortgage to start my house hacking journey.

It would not hurt to start looking for and talking to lenders to understand what your purchasing power looks like and what programs are available in your circumstance. I recommend checking out Lender Finder, a free and easy way to quickly find and compare investor-friendly lenders who specialize in your unique investment strategy.

Please let me know if you have any questions and I'd be happy to assist!

Wale Lawal · Answer

Account Closed

Indeed, house hacking may be a practical tactic for college students looking to reduce their living expenditures. As a college student, take into account the following factors and advice while home hacking:

1. Loans from the Federal Housing Administration (FHA)
2. Hiring Out Additional Space
3. Temporary Rentals
4. Examine Local Laws
5. Loans and Financial Aid
6. Property Administration

Don't forget to carefully consider and prepare your house hacking plan. It's critical to comprehend financing alternatives, the local real estate market, and any applicable laws. For a house hacking operation to be effective, roommates or renters must communicate with one another and have explicit agreements.

Good luck!

Jake Andronico · Answer

Account Closed

Love the way you're thinking. This is how I started (right after graduating college) and it completely changed my life.

If you're serious, talk to a lender in your area to see what you could qualify for or how to make yourself more lendable in the coming years.

Best of luck to you!

Derek Brickley · Answer

Hey Cesar!

Totally agree with Landon. You can definitely do it as a student, and yes a non-occupying coborrower can be a great option if you have a parent, realtive, etc. willing to go on the mortgage with you. Feel free to reach out if you have any questions, I used this same strategy for a 2-unit househack.

Can I house Hack as a College Student?

Can I house Hack as a College Student?

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