Get an early start on homeownership and buy a house in college.
Buying a home is a major investment, and as your property gains value, you can borrow cash from the equity or apply the equity to another home. Unfortunately, buying a home isn't easy for some. And if you're a college student, acquiring a home loan can prove challenging due to a limited credit history or low income. But that doesn't mean you can't meet a lender's qualifications and purchase a property.
Instructions
1. Build credit early and maintain a good rating. The earlier you start building a credit history, the easier it becomes to qualify for a home loan. Get a credit card or loan in your name once you turn 18, then make timely payments to your creditors. Keep balances low to help raise your personal score. Lenders look for a score of 680 or higher for a mortgage loan.
2. Get a job. Many lenders will require at least two years of consistent employment before considering you for a home loan. Acquire employment while in school and be prepared to show W-2s or tax statements.
3. Spend less and save your cash for a down payment. Some students have poor budgeting skills and don't save their money. To buy a home, you generally need a five to 20 percent down payment.
4. Find a co-borrower. Lenders vary, and some may deny your home loan application because of a short credit or employment history. Speak with your parents or other adults--possibly your siblings--to see if one will become a co-borrower or co-signer on your home loan application.
Tags: home loan, credit history, down payment, home loan, home loan application