Students attending or going to attend the University of Oregon should call me to discuss this program to assist in paying for your student housing. Any other college or university in Oregon, Washington or California I can help you with also. The FHA 203b home purchase program is a great way to help pay for college. First time homebuyers are especially valued for this program.

The University of Oregon Ducks call Eugene home, but it is also home to Northwest Christian University, Eugene Bible College, Gutenberg College and Lane Community College.  One of the biggest college expenses is housing for your student. College is expensive and Oregon was way down on the list of affordable college states, so how about a way to make, at least, housing more affordable? If you consider purchasing a home for that student to live in using the FHA 203b program with a non-occupant co-borrower, you might find this to be the way to save some money.

Using my handy dandy “rentometer” that will tell me if a comparable apartment in the area is priced right, it appears that about $1000 per month is pretty average (for an apartment.) So, using an FHA 203b program to purchase the home in the student’s name with the parents as “non-occupant” co-borrowers, let’s compare the rent vs. buy on this home with 3.5% down payment. We are also assuming a 25% tax bracket and no appreciation on the home during a 3 year period.

Purchase                                           Rent

Price                                       $170,000                                           n/a

Monthly Payment (PITIMI)  $    1,142                                            $1,000

Tax Deductibility                $      -205                                            $        0

Adjusted Payment              $       937                                            $1,000

Payment Difference            $        -63 – Assumes no rent increase -

Mortgage Balance               $158,915                                            $        0

Mortgage Reduction            $    4,285 $        0

(Includes Down Payment Return)

I have calculated this with a 5%/5.853% APR* FHA rate but it will work at a higher rate. Imagine what could happen with even a slight appreciation in value.

So, what are the requirements: First of all, the buyer (student) must have some credit and it would help if they had some income, not matter how small. Second, the co-borrower must have sufficient income to make the debt ratios work when added to their current debts. Third, there has to be down payment coming from somewhere, it isn’t even a gift if it is coming from the co-borrower. Finally, get pre-approved for the loan, preferably with me, make an offer on a property and start saving money.

Fill out this contact form if you would like more information.

*Rates and terms subject to change without notice. Maximum loan amounts vary by state, county, and property type. Subject to review of credit and/or collateral; not all applicants will qualify for financing. It is important to make an informed decision when selecting and using a loan product; make sure to compare loan types when making a financing decision. OR License #ML-4832.

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