Can you buy a house as a student? Certainly, when buying a house, students are treated the same as everyone else. In practice, they can borrow less for the mortgage because their income is often lower. Here you will know how it works if your (grand) parents can lend a hand. For the Hilton Head Island SC homes for sale this is very important now.
Buying a house as a student: just the same conditions
It may have happened to you: you want to rent a house with friends and then the description says not for students. It is very annoying of course. Landlords are allowed to do this because the house belongs to them and fair is fair: on average, students are somewhat more wild residents than the elderly and families with children. If you buy a house as a student, it doesn’t work that way. For you just the same conditions apply as for everyone.
What are those conditions then?
When you buy a house, you usually do this by borrowing money from a mortgage. Most people don’t just have a few tons on the couch. To see how much you can borrow, the bank looks at your income and debts. You can borrow 4.5 times your gross annual income for the entire mortgage. So with a gross annual income of 30,000 dollars, the maximum mortgage is 135,000 dollars. In addition, the bank looks at how you earn the income and how likely it is that your income will not fall. With a permanent contract, for example, you are stronger than with income as a flex worker.
And what about debts
Not only has your income influenced what you can borrow. Your debts are also examined. This is how it works: if you lose money every month on a debt, you have less money left over to spend on your mortgage every month. That is why the bank also wants to know what your other fixed costs are before they borrow your money for the purchase of your house. Consider, for example, a student loan.
My (grand) parents can lend a hand
The requirements are therefore quite strict. As you can see in the example, with an income that most students don’t have, you can borrow very little. For example, from Amsterdam, you can buy a parking space of $ 135,000. If your parents have money then they can give you a hand. I’ll tell you how this works.
A donation of 100,800 dollars
If your parents have a lot of savings, they can give you an amount to buy a house. It sounds crazy, but there are rules attached to it that have to do with the tax. You may receive a large amount tax-free once for buying a house, in 2018 this amount will be 100,800 dollars. Tip: do you already have a house in mind and do your parents want to donate? Enter this amount as your own money in tool.
Borrow extra money from your parents
You can also borrow money from your parents. Please note: when you do this, the bank will consider this as a debt. You also pay interest on a loan from your parents otherwise it would be a gift. This interest ensures that you can spend less on your mortgage each month. There is a way to prevent this.