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Thread: Buying a house with financial aid instead of renting?

  1. #1

    Buying a house with financial aid instead of renting?

    Has anyone ever considered buying a house with Financial Aid money instead of renting. Followed by renting out the extra rooms to quiet people?

  2. #2
    Cyburbian michiganplanner's avatar
    Mar 2005
    the verge of Stan-dom
    This doesn't strike me as a fiscally responsible idea. Without crunching some numbers I can't make a quantattive argument against it (and who knows, maybe the numbers would indicate it is not so irresponsible). But I don't think I'd do it with my money.
    I'd be more apathetic if I weren't so lethargic.

  3. #3
    Cyburbian jordanb's avatar
    May 2003
    City of Low Low Wages!
    Can the house legally be subdivided?

  4. #4
    I heard some stories of parents buying their kids a house while they were in college using interest-only loans so that they could sell back at a higher price when the kids graduate. In the post-housing bubble market however this doesn't sound like very prudent behavior.

    You might want to see if you can rent a room in a house from a landlord (houselord?) instead.

    Quote Originally posted by jordanb
    Can the house legally be subdivided?
    That's sort of like asking if you can legally smoke pot in your house. No, but who cares?

  5. #5
    OH....IO Hink's avatar
    Jan 2005
    Hang on Sloopy...land
    I actually just did this.... well sort of.

    My fiance and I just bought a house on her financial aid (she is a med student). She gets roughly $600 a month to rent or whatever else she wants to do with it. They basically give her a large check and tell her to divide it anyway they want.

    The bank was hesitant to give us (I am still in school making $0 a month) a loan. But with the down payment over 20% they were able to make it happen. Although I have not a dollar to my name, I feel that it was a good investment, and am happy that I could do something on my own.

    Now I don't know if they gave it to us because my fiance is a med student or not, but it worked out for us. If you don't mind being more poor than you are now, I say go for it. Interest rates are only rising.

    Let me know if you want any more info on how we worked the logistics. Good luck looking!
    A common mistake people make when trying to design something completely foolproof is to underestimate the ingenuity of complete fools. -Douglas Adams

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