Isn’t homeownership a big deal?

It is, and there’s a lot to know and a lot to keep track of. However, it comes with some pretty sweet advantages:

Save Money:

First and foremost, the College Cribs program can save you money, and make you money. Every month you’re going to pay rent.  Even if you live in a dorm, you just pay upfront (or even better, borrower it at 6% interest for the rest of your life…). Instead, you can own. Using a mortgage program that allows your parents to co-sign as “non-occupying coborrowers”, you can qualify for a mortgage even if you don’t personally make any money or have much previous credit. From there it’s a matter of selecting responsible tenants to live with—friends work best—who rent a room in that house and pay their rent to you. Depending on where you are and what the average home prices and rents are for your area, you can offset or even eliminate your monthly living expenses…and in some cases you can even make money on a monthly basis.

Improve Your Credit:

Having a reportable monthly mortgage will make your credit score skyrocket, setting you up for success upon graduation.

Build Intergenerational Wealth:

Some of our customers have realized profits of 10K, 20K, and more upon sale, and that’s great, but other students have retained their rentals after graduation continued to take advantage of the income and tax benefits they offer. Real Estate ownership is one of the most important steps you can take in real long-term wealth creation. It is an investment in yourself and your future plans, whatever they may be…but even if you don’t retain the property, graduating with great credit and 10K in the bank is a heck of a lot better than graduating with neither.

Dorm Life Isn’t For Everyone

The dorms are great, don’t get us wrong. They smell spectacular. No one ever puts their shoes in the dryer at 4:00 AM. The walls are thick, so you’re never bothered by private sounds from adjoining rooms. It’s a calm, quiet, stress-free environment. The bathrooms are pristine. That being said, some people just don’t like it there! I know, right? In your own home, you can come and go as you please, decorate how you please, invite and disinvite whomever you please, keep the volume at levels you can handle, and even bring along your pets or service animals. Do you need special living or learning accommodations? Design them. Want a little more comfort and safety than a dorm offers? College Cribs has you covered. 

Some schools require you to live in the dorm for the first year. If so, no problem. Enjoy that time, because it really is a blast in a lot of ways, and when you get ready to go back for your sophomore year, remember your options. However, depending on your school, owning a home off campus might be considered “commuting” and that rule might not apply. Check with your institution to make sure. 

For the Parents

As a non-occupying co-borrower, you will have full access to the property. If you or your student need something, you don’t need to deal with college administrators to handle it. Homeownership will guide your child in developing personal responsibility and financial foresight. We have every confidence your child will be a responsible homeowner. However, just in case, we also offer insurance and home warranty options that ensure no matter what kind of mistake he or she might make—from forgetting to change the AC filter to backed up gutters—you’ll be able to help them deal with a minimum of financial burden. 

In general, your credit, income, and assets are used to qualify for the loan, in addition to those of your child. You will be a legal owner, on the note as well as the deed and mortgage, with all the rights and privileges you’d expect.