I’ll be starting at a tip ten law propagandize in the fall, and I am meditative about shopping a apartment house instead of renting. I have glorious credit (750s), as well as sufficient for a 20% down payment. I have a car value $12,000, paid off, and no alternative assets. I have no credit label debt, and my tyro loans have been roughly all deferred. My usually genuine guilt at this point is a $50/month loan payment. I am seeking at two-bedroom units, updated, for in between $115-125k. The marketplace where I am going to propagandize is well-insulated, a comparatively abundant college locale and skill values have in all appreciated really well but right right away things have been attack bottom (or they appear to be). The places I am seeking at sole for close to $200k dual years ago. I’d similar to to squeeze one of these units and rent the second room to an additional law student. My tyro loan income and income from summer practice allows me to absolutely compensate the debt but a roommate, but with a roommate I cut costs by some-more than half. My devise is to live there for 3 years, rent it out for an additional 2-3 and sell it prior to to reaching the collateral gains taxation cutoff (2 years chateau in the 5 years prior to to sale). Mortgage remuneration would be around $600/month, and fees and taxes, so closer to $800/month–I’d be profitable $750 to rent a unfair one-bedroom. I’ll additionally save $10k given I’ll validate for residency standing in the state I am relocating to and in-state fee rates. Overall I think I’ll come out well forward of renting, my usually complaint is subordinate for a loan. I have been operative really irregularly for the same association for the past dual years partial time (just a couple of hours here and there, competence have left dead partial of which time) and have small verifiable income. My down remuneration comes from assets from a great pursuit I had a couple of years ago, prior to to I went behind to finish my undergraduate grade (been in propagandize full time given 2006, worked full time prior to to that). Parents have been no help, worse off than I am financially. Banks do not equate tyro loans as income as far as I know. My summer practice options have been solid, entrance from the propagandize I’ll be attending, but this is unverifiable as of yet. As is the let income I’ll have from the second bedroom. Even but summer employment, my loan amounts absolutely cover the debt payments. I suspicion about a SISA loan, but I can’t distortion about anything, and I listen to NINA loans have left the approach of the dinosaur. Any suggestions?
It is long, but I figured it would be value putting all the info in so I didn’t have to answer questions about it later! I’m a initial time buyer, so greatfully help, thanks!
Renting a room is not bootleg nor is it an “illegal occupancy.” 
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With the credit situation being what it is you will be hard pressed to obtain a mortgage loan with no two-year history of steady employment in the same line of work. You will also not be able to claim any rental from a second bedroom as this would be an illegal occupancy and would not count towards your income. You need at least two years uninterrupted work history in the same field in order to qualify for a loan. As it is you do not have it, therefore no mortgage. You will need to rent for at least two more years.
You have a serious problem qualifying for a loan without verifiable income these days. Your student loan money is not income! It is borrowed. Rental income will be seriously discounted in the income equation & is not enough to help you qualify for the mortgage.
Yes, it can make more sense economically to purchase a 2 BR condo and rent out one BR to a fellow student. But you must have a job and income to qualify for a loan. Can you work more for the company you have been working for over the past couple years? If you did that, then talked to the bank, perhaps with good credit & big down payment you could swing the deal.
don’t buy a condo buy something with a little character for god’s sake…not something stamped out with a cookie cutter
You will not get a loan under those circumstances. Nor should you.
Would your parents co-sign for you?