Buying a house with financial aid instead of renting?

[OfficialPlanner]

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

[michiganplanner]

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.

[jordanb]

Can the house legally be subdivided?

[jaws]

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.

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?

[Hink]

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!