Students can be homeowners too!

It’s been said that the secret to being rich is being young. The idea is that if you can start investing early, those investments will compound over time and allow you to retire with dollars that have continued to work for you even as they sit in your different accounts. 

While there are risks with any investment you make, real estate is known as one of the safest which makes it a great place to start! It can seem daunting to reach for this while still in school, but we are here to tell you that it is possible, and more than that, it's a really great way to jumpstart your financial future !

But how?

A common misconception is that homeownership is too expensive and could never be attained by a student or young professional. We’re here to bust that myth and tell you that it really can be a possibility even if you are young. 

The first obstacle that most people will point out is saving for a down payment. However, there are assistance programs and loan types that can allow you to purchase a home with little to no down payment! Our advice? Meet with a lender to see which of these could be a good fit for you. Our friends at Flat Branch Home Loans are industry experts that can point you in the right direction.

Can I even be pre-approved? 

Again, there are a lot of misconceptions about the pre-approval process. We always encourage you to meet with a lender -- you might be surprised to see what you are able to be pre-qualified for!

It's also super normal to have a cosigner! Having that family member or friend sign on with you may be the extra little push that you need to be pre-qualified for a starter home. Don't be afraid to ask someone for help!

What about the payments?

Now here is a real #lifehack for you! Part of the beauty of homeownership while you’re a student is the fact that you can easily find good roommates. This is key to making homeownership a little more comfortable before you’re out there making the big bucks post-grad. 

Splitting your mortgage with friends will do two big things for you. First, it will make the full monthly payment a little less of a burden on you individually. You’ll have more disposable income this way, giving you more freedom to have fun during that college experience OR make investments elsewhere — remember the secret to being rich?! 

Second, the payments that your roommates are making will build equity in your name! This will give you a major leg up when you’re ready to resell the house and upgrade.

So what’s in it for them? Splitting a mortgage 3-4 ways can often be a cheaper option than renting, so it’s a great deal for your roommates as well. Talk about a win-win! 

So how do I get started?

First and foremost, we recommend getting pre-approved by a local lender. Meet with a loan officer — a real person — who can give you a roadmap on how to make this dream a reality. 

Once you have a pre-approval and a budget, the fun part begins: house hunting! Here at Schuber Mitchell, we have wonderful options at an entry level price point that would be perfect for any Missouri Southern or KCU Med student.

Still have questions?

It's totally normal, and that's why we have our New Home Advisors! Their job is to help provide clarity and point buyers in the right direction as they start their home-buying journey.