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Updated about 17 years ago,
how does a full time student finance property?
so i have always had an interest in owning property, my parents have been extremely successful with it and ever since i was about 12 years old it has been my dream, weird, i know.
anyways im now 24 years old and am a full time student. The market where i live (phoenix area) is in a major valley, and has been for almost a year and a half now following a crazy boom. Real estate prices have have now slowly gotten back down to "affordable" and i would love to make a purchase. i just want to start out small and get into a middle class condo style property (100-130K) with several bedrooms so i can fill it up with roomates to help pay the mortgage
Here is my problem, i understand the things that lenders look at to "approve" a buyer for a mortgage.
income
credit
collateral
downpayment
and so on
because i am a full time student i do not make alot of money, however i have excellent credit and can come up with 10% down, but i was wondering what exactly a lender consider as "income".
i have ran the numbers and i am confident i can afford the properties in the price range i have been looking at but my tax return wont agree, because i make most of my money from other sources doing side jobs, etc.
also do they take into account student loan income? i do not have any student loans as of right now becuase i have plenty to live off of without them but i have access to 16 g's a year just in student loan money, would they count that as income?
basically my finances are as follows
actual job with a paycheck - $10-14K/yr
sidejobs - $10-14k/yr
student grants - $4k/yr
parent aid - $3-7k/yr
and have an available $16k a year in student loan (which is interest free untill i graduate, and a great rate after that)
and i have no debt, car is paid off, etc.
is it possible for a student to purchase property on a tax income level of 14K??
if not i will just have to wait untill im out of school and make the big bucks but i sure would love to start building some equity while the market is down. And the way i have the numbers, i will only have to pay about 80 bucks a month out of my own pocket towards teh mortgage if i keep it occupied with roomates.
feel free to be honest because like you i am here to learn and thanks for your input and help.
rynophiliac