Can a grad student be approved for a mortgage with loans as income?

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I’m thinking about grad school and in the areas I am looking at buying a condo/townhouse would be $ 200-300 a month cheaper than renting an apartment. I have zero debt from undergrad and a couple grand saved, is there any chance of being approved for a loan when I’d be paying with a student loan b.c the student loan will be my income.

6 Comments
  1. Reply
    I'm a Genius
    May 4, 2011 at 4:32 am

    That just doesn’t sound like a smart idea anyway. You should look into having a co-signer (like your parents) for the loan instead.

  2. Reply
    mamatsidale
    May 4, 2011 at 5:15 am

    Most banks want to see verified INCOME. Unless you can get someone to cosign the loan with you. also, do you have the 20% for a downpayment? That might help.

  3. Reply
    Dizzy_Lizzy
    May 4, 2011 at 6:15 am

    Loans aren’t income, and I have a hard time thinking a lender would give you a loan knowing you’ll be paying them with another loan. The only way to find out though is to actually talk to a lender.

    BTW, does this “cheaper per month” number you’re working with include that you’ll pay homeowner’s insurance & property taxes as part of your payment?

    Online calculators are notoriously inaccurate because they don’t include this info. Those two costs increase my payment over what online calculators says it is by about 30%.

  4. Reply
    LIONDANCER
    May 4, 2011 at 6:42 am

    Not likely. Your mortgage would be for the next 10 years at least. Your student loans would not be dependable income for that long of time. What if you don’t qualify for a student loan for the next semester?
    You could see if your parents would co-sign but to me at this point in your life getting another loan just doesn’t seem to be such a good idea.

  5. Reply
    Betty
    May 4, 2011 at 7:02 am

    The simple answer-no.
    You can’t use loans as income, they are not considered income b/c you have to pay them back.

  6. Reply
    KeithR@MountainBeachMortgage.com
    May 4, 2011 at 7:27 am

    This won’t answer your question although it’s another option…I have two friends that wouldn’t qualify for a mortgage (one is a Realtor – yikes) and I suggested they look to find a seller that would accept a Lease Option. In this terrible market, they both have a new home to live in and nobody ever ran their credit or even qualified their ability to pay for any of it. It’s also called “rent-to-own”. Google this if you’re serious about possibly owning without the conventional “Mortgage” route. I wouldn’t care, as long as you made your lease payment, where the money came from. Would you?

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