Grad student – am I a good candidate for a mortgage?
by Author on Saturday, May 15th, 2010 | 4 Comments
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You can ask but you need 2 years work and tax returns to prove it, yes you are doing good but in school with no work record so they will look at it as yes it is good now, but what of the next year or so
Well see
http://ebiznus.com
I found it on answers.yahoo.com hope it resolves.
In my personal opinion, I would wait until my degree was completed. That worked the best for me. I rented an apartment for three years, until I made associate professor. Then, I financed a house with money I had saved over the previous three years. It also gave me time to start paying down my student loans. Though, if you think that you can pull it off, and you happen to be a Business grad student, then go for it. The housing market is at an all time low.
If your only income is the $24K, the most you can possibly receive approval for is $75K mortgage (rule of thumb – three times your gross annual salary). The FHA on the $100K would require $3,500 down, leaving you with $2,500, which is probably not enough to cover the closing costs, which are another 3 to 5 percent. Thus, you would have to dip into your emergency fund – which would also mean disqualification from many lenders since they want two months of expenses in an account and not used toward the purchase.
In all honesty, your finances, while very good for your current situation, really warrant waiting until after graduation for buying a house.