Professional Student Mortgage Options?

I'm a professional student (medical school). Currently I'm living off government loans which cover tuition and living expenses. This is common for unmarried, traditional (straight from undergrad) med students. I do work but it's an extremely small number of hours - there is simply not time for it during med school - and I will be working full-time during the summer.

I'd like to look into buying a home instead of paying rent for 4 years. My monthly mortgage payment would be less than my current rent payment... proving that I can and do make this payment monthly.

I have great credit. I also have parents willing to co-sign and provide the downpayment/closing costs.

Obviously I have had no luck getting approved for a loan, I was told they do not count loans as income (of course). Any ideas? Am I out of luck? I was told to look into an FHA mortgage, but my understanding is that they still require proof of steady income for 2 years.

My parents are considering buying the house themselves and then having me pay them 'rent'. I wasn't sure if there were any other ideas out there.

chrisburns · Posted: Thu Oct 22, 2009 8:20 am Post subject:

Your parents can co-sign so you can be on the loan with them as well.

Posted: Thu Oct 22, 2009 9:13 am Post subject:

I mentioned this when I was talking to the mortgage officer. I said my parents are willing to put down the downpayment and co-sign. He said no.

chrisburns · Posted: Thu Oct 22, 2009 10:23 am Post subject:

Did he say why no?

Posted: Fri Oct 23, 2009 3:59 pm Post subject:

He said they base approval on income, and loans don't count as income so in their eyes I have $0 income. Co-signers or not, they can't approve someone with 0 income.

Posted: Sat Oct 24, 2009 2:30 pm Post subject:

Any other ideas or tips from anyone?

sunnyca2009 · Joined: 04 Aug 2009 Posts: 1737 36.13 Dollars($)

Well you parents can buy the house in thier name and get the loan in thier name until you can show some income which is accepted by the bank

You cna continue to make payments on the loan and when you are ready with the right incoem, you cna refinance the loan in your name and also add your name on the property by doign quit claim deed

gmakerley · Posted: Sun Oct 25, 2009 8:46 pm Post subject:

yes...parents buy home and you rent from them. someday you will have a real income and a job and you would be able to then purchase the home from them (or not). your lack of income is definitely a stumbling block.

sonjakracine · Posted: Mon Oct 26, 2009 11:19 am Post subject:

Best advise is to go FHA with parents being a cosigner and calling it a kiddie condo. meaning you have to prove the home is close to the schoool that you are getting your education. You only need provide transcripts, no income required on your part. Parents have to obviously be able to afford it and the super thing is that you will only need 3.5% down. Not all mortgage officers are created equal so some may not even know this is an option.

Posted: Sat Oct 31, 2009 1:30 am Post subject:

Thanks for all the advice. I'll be re-selling in 4 years (more than likely), so I won't be refinancing in my name and/or buying the house from them. This is just a temporary deal so that I can put my monthly payments into an investment instead of just throwing it away on rent payments. I do not plan on staying in the area.

I will absolutely look into the 'kiddie condo'! I do have the business card of a guy who specializes in FHAs, he should know about that. That's great news, thank you!

sonjakracine · Posted: Mon Nov 02, 2009 7:21 am Post subject:

Well, if for any reason he can't help, let me know I'd be happy to !!!

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