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codeyell0

Looking at buying a house but want to go to school also

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My wife and I are looking to buy a home in the future.

But I want to go to school now.

 

Will getting school loans hurt my credit score? I currently am trying to build up my credit and don't have high limit loans

or really any open credit accounts

 

I do have a target card. with a 500 limit but thats it.

 

I don't know when the fasfa/gov't loans get added to my report.

 

My wife has a decent score 700 or more but mine is mid 500's

she says I shouldn't go to school as it will hurt our chances of getting a house.

 

What should I do?

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Have you done any disputing? Will you be able to work and go to school at the same time? Do you have much debt showing on your report ATM? All loan payments/income? A lender is going to want 620 or higher btw.

 

 

A couple of positive SL tradelines could help your credit actually.

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Why is your score low? You are looking at this from the wrong end (IMO). You should improve your credit score independent of the decision about going to school.

 

Have you looked at your reports lately? What is on them?

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I have 16k in student loans at this time and it has not made my score drop. But I wouldn't know anything about how the DTI is figured for a mortgage when you have loans in deferment. Since your score is not high enough to get a mortgage right now I would def work on getting your credit repaired....Good Luck to you!!

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Opps shouldn't type and talk on the phone at the same time.

 

Anyway hope someone can answer this question

 

Fixed it for you. :rolleyes:

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my score is low due to old bad debts. credit cards defaulted on ect. nothing new. I can get the student loans no problem

since I never had student loans before.

 

 

I am working now and have been in the same job for years. But I would like to get my degree. So I can make more money down the road plus if I get laid off I can say I have a degree, and more easily get a job.

 

But when I was talking to my wife she says don't go because we want to buy a house.

I'm afraid if I don't go now I will never get to school. on the other hand I don't want school to stop me from getting a house.

but I won't have to pay back my student loan for another 4.5 years.

 

So will getting new student loans greatly affect us getting a house?

 

I know buying a new car or credit card and then trying to get a house wouldn't be good but student loans are a whole other realm.

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school starts in september time is running out for a decision. a friend of mine will be taking the same courses and going with him would be a real help plus its the push I need to go back to school.

 

Waiting until my credit is fixed but waiting a year or two just for my credit to be better ehhh then i might never go.

I hope you can see where i'm coming from.

 

I still have to save for a down payment for the house we will put down 10% so we aren't buying the house tomorrow but sometime soon.

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OK

 

My wife has a decent credit score 700+

My score is 550ish

 

We can come up with a decent down payment for a house 10%

 

Will adding school loans to my credit hurt me getting a house. I have only 1 open trade line and thats a 500 dollar target card.

I don't know how they look at married couples credit if one has good credit and one bad.

Edited by codeyell0

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When are you planning to buy the house? You need to get your credit repaired before buying, whether or not you go back to school. The student loans on their own would not prevent you from getting a house, but you haven't given us enough information to say for sure if you would get one without the student loans. Will your income be enough during school?

 

You should get started on cleaning up your credit right away. That is a good thing to do whichever path you take.

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I think if you want to start school then you should! Buying a house is important yes but nothing tops having a good education so you can PAY for the house. :huh:

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My brother and sister-in-law just bought a house.....her score was low like yours and his was high like your wife's. They were advised to not put her on the loan because it would have raised their rate. I would suggest talking to a loan officer. When I tried to get approved they told me what I absolutely had to clean up on my report to even be considered....it was really helpful. I have pushed the house dream back in order to clean up my report. And like I said in my last post, I have 16k in student loans and it has not dropped my score, nor did they mention it when trying to get approved for a mortgage. They were more worried about collections accounts.

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You should definitelty be working on improving your credit. Going to school & working concurrently is an option. Also going to school online is another option and you can set your own pace for schooling. The University of Phoenix is a great online accredited school. Have you decided on what your major will be?

Edited by refi4

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my score is low due to old bad debts. credit cards defaulted on ect. nothing new. I can get the student loans no problem

since I never had student loans before.

 

I am working now and have been in the same job for years. But I would like to get my degree. So I can make more money down the road plus if I get laid off I can say I have a degree, and more easily get a job.

 

But when I was talking to my wife she says don't go because we want to buy a house.

I'm afraid if I don't go now I will never get to school. on the other hand I don't want school to stop me from getting a house.

but I won't have to pay back my student loan for another 4.5 years.

 

So will getting new student loans greatly affect us getting a house?

 

I know buying a new car or credit card and then trying to get a house wouldn't be good but student loans are a whole other realm.

 

I think the primary effect of the school loans will be your ability to afford the monthly house payments. Even in these current credit markets it is still remarkably easy to pile up more debt (which will have to be paid back with interest). I am all about education (I have a Masters degree in Biomedical Engineering from a well-known private school), but my concern is that when you add a house you have two potential major expenses coming.

 

I would start with the premise that your eventual house payment should be no more than 25% of your take-home pay, then I would calculate how much $ would be left for monthly expenses (and the eventual student loan payment) after you land your new job. You should have a sense of what your new career would pay in the open market to help with this calculation. If you find you will be swimming in debt (with lousy credit) after you buy the house and get the degree, the house will be a curse, not a blessing. If school (and thus a higher income) is the priority, I would stick with that first. They will still have houses for sale when you are done (and can buy from a position of financial strength).

 

Just my 2 cents :)

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If you are geting loans AND going to school at leat 1/2 time, your payment will be in deferment as long as you are in school at least 1/2 time. This is to your benefit because technically you do not have a payment. Depending on what type of loan you get, you may need to show that you will not be responsible for payments for at least 12 months, but only your LO can tell you.

 

I say do it. I just got approved for a mortgage, but I'm going back to school this month and applied for a loan. If I get the loan, I plan to explain that it will be in deferment while I'm in school for 18 mos. I also just consolidated my previous loans with another lender and when the new account hit and old accounts closed, my score went UP! YMMV...

Edited by VonneG

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You should definitelty be working on improving your credit. Going to school & working concurrently is an option. Also going to school online is another option and you can set your own pace for schooling. The University of Phoenix is a great online accredited school. Have you decided on what your major will be?

 

No it is not.

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You should definitelty be working on improving your credit. Going to school & working concurrently is an option. Also going to school online is another option and you can set your own pace for schooling. The University of Phoenix is a great online accredited school. Have you decided on what your major will be?

 

No it is not.

What online school(s) would you recommend if any?

Edited by refi4

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my $0.02

 

get your education first... and work on building or repairing your credit....

 

trust me....today with no education is very hard on the job market.

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You should definitelty be working on improving your credit. Going to school & working concurrently is an option. Also going to school online is another option and you can set your own pace for schooling. The University of Phoenix is a great online accredited school. Have you decided on what your major will be?

 

No it is not.

What online school(s) would you recommend if any?

 

Mine.

 

The Harvard University Extension School

 

http://www.extension.harvard.edu/

http://extensionstudent.com/

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You should definitelty be working on improving your credit. Going to school & working concurrently is an option. Also going to school online is another option and you can set your own pace for schooling. The University of Phoenix is a great online accredited school. Have you decided on what your major will be?

 

No it is not.

What online school(s) would you recommend if any?

 

most public universities have an online degree program.

boston university has one

most state schools

not hard to find and a fraction of the cost of UP.

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As other posters have suggested, I think the issue is less about how student loans will affect your credit score (minimally) and more about if this is the right time for you to buy a house. For one, if you intend to be on the mortgage, you have a lot of credit rehab to do before you can be considered for a mortgage. Assuming you've never bought a house before, you need credit scores of 620 to be considered for FHA. Secondly, will you be working while in school? If not, lack of employment will be an issue for the LO even if you get your scores up where they need to be. If so, are you sure you're prepared to work full-time and go to school at the same time just so you can get this house?

 

Clearly it's your decision, but IMO if your heart is set on going to school (which it seems like it is), then I think that should be your first priority and the house should sit on the back burner for now. Time heals a low FICO, so if your program is 2-4 years that can do wonders for your credit score while you finish up school and then you'll be in a much better position to buy.

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You should definitelty be working on improving your credit. Going to school & working concurrently is an option. Also going to school online is another option and you can set your own pace for schooling. The University of Phoenix is a great online accredited school. Have you decided on what your major will be?

 

No it is not.

What online school(s) would you recommend if any?

 

most public universities have an online degree program.

boston university has one

most state schools

not hard to find and a fraction of the cost of UP.

Why ddn't you say that in the first place? Instead of just disagreeing, give some more info.

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You should definitelty be working on improving your credit. Going to school & working concurrently is an option. Also going to school online is another option and you can set your own pace for schooling. The University of Phoenix is a great online accredited school. Have you decided on what your major will be?

 

No it is not.

What online school(s) would you recommend if any?

 

most public universities have an online degree program.

boston university has one

most state schools

not hard to find and a fraction of the cost of UP.

Why ddn't you say that in the first place? Instead of just disagreeing, give some more info.

 

Here's a thought. Why dont you stop posting false info in the first place. Then there is no need for her to say anything at all.

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You should definitelty be working on improving your credit. Going to school & working concurrently is an option. Also going to school online is another option and you can set your own pace for schooling. The University of Phoenix is a great online accredited school. Have you decided on what your major will be?

 

No it is not.

What online school(s) would you recommend if any?

 

most public universities have an online degree program.

boston university has one

most state schools

not hard to find and a fraction of the cost of UP.

Why ddn't you say that in the first place? Instead of just disagreeing, give some more info.

 

what is your problem? if the OP wanted info, they could have asked. IMO, I don't owe you an answer, you're not the one who started this thread. :huh:

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