College Bound & Homeless?

As summer rolls around, the air fills with excitement — graduation parties, gifts, and summer plans — as you get ready to send your college-bound child embarking on new adventures. Have you considered a tax deduction while creating peace of mind? Where will your student reside during their four (or perhaps five) years of higher education?

Real Estate investment of a home within the area of a college town provides the benefits of rental income but also avoids rental issues of apartments and lets you be the decision maker of who is in proximity of your child. 

One particularly beneficial mortgage option for this scenario is known as a Non-Occupying Co-Borrower loan. Your college student can be the primary applicant home buyer, and the parent acts as a co-signer. They still qualify for first-time homebuyer benefits and low-down payment options, such as 3.5% offered by FHA financing. Rental costs have soared and are now exceeding several thousand dollars, so this method is working in any college area, including Oklahoma,  Arkansas, and Louisiana, which are frequent campuses attended by Texan students. 

Tharine Wells, an expert in home insurance at Goosehead, reflects on her experience with a rental property purchased while her son Brandy attended Texas Tech in Lubbock. Her only regret? Not doing it sooner. As she attests, “the peace of mind was worth every dime.” Following graduation, Brady remained in Lubbock where he worked, and years later, they sold the house for a significant profit. It was an excellent credit builder for her son and created homeownership finance responsibility. 

For further insights into mortgage strategies and homeownership tips, consider joining our virtual homebuyer’s class held every second Tuesday of the month. Together, we will explore a myriad of real estate investment possibilities tailored to you and your family’s needs. Contact me at StacyLynn@HighlandsMortgage.com.