I'm a college sophomore who would rather invest in a property than rent, is it possible to get a loan?
I am 19 and I have little to no credit. I have a part time job, and about $10,000 in assets. I also receive financial aid and scholarships that, last year, payed for all my tuition and fees and still gave me a few thousand dollars of spending money. I am receiving them again this year, and for two more years. My roommate and I have signed contracts to pay $375/month at a local apartment. I'm wanting to invest in a home for less than $50,000 (ie buy a small area of land for ~$10,000, build a small livable metal home on it, or buy a trailer for it, for less than $20,000). I'm wondering if it's possible for me to get a loan to do this, as my source of income would be my financial aid/scholarships, and my roommates rent payments. Having my parents cosign is most likely not an option. by schova_535_705 from Tecumseh, Oklahoma. Jun 16th 2013
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Very ambitions for someone so young.. but here's reality.. Financial Aid/scholarships cannot be used as income for loan qualifications, you need to be employed or have another form of income that is likely to continue for at least 2 years.. since student aid and scholarships are applied for, there's no guarantee you will qualify, be approved, or that there will be funding for the programs. also, your proposal is actually for a construction loan, which is extremely difficult to get, but near impossible for any unorthodox style home, such as your proposed "metal home"... another issue would be with your loan amount.. very few lenders will lend under 50K... It's good that your thinking, but if your serious about real estate investing.. stop trying to reinvent the wheel... go read a few books and get educated, see what the pro's tell you how to get started.. and learn from their mistakes..I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
William J Acres (William_Acres)
#74 ranked lender in Arizona - 8,728 contributions
Very ambitions for someone so young.. but here's reality.. Financial Aid/scholarships cannot be used as income for loan qualifications, you need to be employed or have another form of income that is likely to continue for at least 2 years.. since student aid and scholarships are applied for, there's no guarantee you will qualify, be approved, or that there will be funding for the programs. also, your proposal is actually for a construction loan, which is extremely difficult to get, but near impossible for any unorthodox style home, such as your proposed "metal home"... another issue would be with your loan amount.. very few lenders will lend under 50K... It's good that your thinking, but if your serious about real estate investing.. stop trying to reinvent the wheel... go read a few books and get educated, see what the pro's tell you how to get started.. and learn from their mistakes..I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com
Joe Metzler (JoeMetzler)
#17 ranked lender in Minnesota - 4,848 contributions
When providing mortgage loans, there are a few items lenders are looking for, including an established credit history, and established work history. While your age isn't an official factor, being such a young age is an issue because you are not "established" yet. Part-time jobs don't count unless you've been there at least two years. You also can not use financial aid and scholarships as a source of income.
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