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How to Get a Home Loan as a Student

Written By video massa on Jumat, 01 November 2013 | 04.37

How to Get a Home Loan as a Student

Buying a home is a major investment, and as your property gains value, you can borrow cash from the equity or apply the equity to another home. Unfortunately, buying a home isn't easy for some. And if you're a college student, acquiring a home loan can prove challenging due to a limited credit history or low income. But that doesn't mean you can't meet a lender's qualifications and purchase a property.

Instructions

    1

    Build credit early and maintain a good rating. The earlier you start building a credit history, the easier it becomes to qualify for a home loan. Get a credit card or loan in your name once you turn 18, then make timely payments to your creditors. Keep balances low to help raise your personal score. Lenders look for a score of 680 or higher for a mortgage loan.

    2

    Get a job. Many lenders will require at least two years of consistent employment before considering you for a home loan. Acquire employment while in school and be prepared to show W-2s or tax statements.

    3

    Spend less and save your cash for a down payment. Some students have poor budgeting skills and don't save their money. To buy a home, you generally need a five to 20 percent down payment.

    4

    Find a co-borrower. Lenders vary, and some may deny your home loan application because of a short credit or employment history. Speak with your parents or other adults--possibly your siblings--to see if one will become a co-borrower or co-signer on your home loan application.



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