Hey ya'll,
I dont think I've polled Msshop for financial advice, and this idea is pretty far in left field, but something makes me wonder, so I figured I'd run it past ya'll for some opinions...

I am in my last 2 quarters of school, I have the ability to borrow up to $X,000 in "student loans" (until I'm done with school...)

Wife and I arent short of money, but we do plan on buying a house about 4 or 6 months after I'm done with school (graduate in June).

So basically, I have the opportunity to borrow $x,000 at 2.77% (paid off over student loan-size time frames...) that would be cash in hand toward putting it down on a house (He have reliable cars, we are both 29 years old, she has a BS in microbiology and a research job at a local hospital. We are doing ok financially now (should be better when I get a FT job as a degreed dude...) I have about $3k in loans right now, $50/m once I need to start making payments on it.
Also, I might be able to get 15% of my loan balance paid off in June (part of a guard incentive program...)...maybe, dont want to count on this.

Part of me says "Borrowing money for a down payment on something is shiznitty financial sense and should be avoided, gosh you are dumb John."

The other part of me says: "Hmm, 2.77% for school loans, any home rate will be higher, why not take advantage of the school deal while I can ?"

Maybe I should have made this a poll. If this is a horrible idea without merit, please go easy on me =)

-John

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2009 Kia Sedona
2009 Honda Odyssey EX-L
12006 Jetta Pumpe Duse
(insert Mercedes here)

Husband, Father, sometimes friend =)

Work the numbers out. If it is affordable it may amount to best use of the opportunity.

A lot of mortgage companies require that you don’t take out a loan for the down payment and will search records back a couple of months to verify this

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...Tracy

'00 ML320 "Casper"
'92 400E "Stella"

If it's legal, go for it. Can't beat the interest rate.

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Ali Al-Chalabi

2001 CLK55
1999 Dodge Ram 2500 Cummins Diesel
2002 Harley-Davidson Fatboy
Merlin Extralight w/ Campy Record

Lot cheaper than doing an 80/20 loan where the 20% is at 9 percent or thereabouts. With a decent down you can avoid PMI too. People do 100% loans all the time, and in this case the down money would be much lower than 6% or so. Some lenders will care where you got the down money, but others won't. There are a million different loans out there these days too.

If the appreciation is strong in your area it most certainly would be worth it. Right now in Fla if you waited two years to buy you could have lost out on the 25-50% appreciation in many areas of town. You do the math.

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1994 C 280 117.5k, White (Good as new)
1997 Toyota Camry 149k Miles (Not so pretty anymore)

1990 190e 2.6 95k (Sold-Should not have)
1981 240d Stick ??? Miles...sold

I am pretty sure they require the school to sign off on these loans.

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'90 300SE 298k
-300K and it gets put into retirement.
'80 300D 255k Purchased new by family in 1980.

Had a:
1973 220 (gas)
1980 300SD
1992 400E

If you have credit, you shouldn't even have to put money down. Check out a Mortgage broker....not bank.

But good job on getting a house, real estate is where it's at.......most of the time.

You're allowed 36% of your gross income to service your debt. You're allowed a max of 28% for your mortgage. If the money you borrow on your student loan plus all other monthly obligations don't add up to more than 8% then you should be able to borrow enough money. Those numbers may change depending on the lender.

I think it's wise especially given the fact that the interest rates are so low on student loans.

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You don't need a weatherman to know which way the wind blows - Robert A. Zimmerman

If you have good credit you probably don't need a down payment. If you decide to take the school $$ be forewarned you may be asked were the money came from.

.02

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BENZ THERE DONE THAThttp://www.peachparts.com/shopforum/...c/progress.gif
15 VW Passat TDI
00 E420
98 E300 DT
97 E420 Donor Car - NEED PARTS? PM ME!
97 S500
97 E300D
86 Holden Jackaroo Turbo D
86 300SDL
(o\|/o)

Its been a lot of years but I seem to remember that any funds not spent on actual schooling (suppored by documentation) has to be returned.......

At least it used to be that way.

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Proud owner of ....
1971 280SE W108
1979 300SD W116
1983 300D W123
1975 Ironhead Sportster chopper
1987 GMC 3/4 ton 4X4 Diesel
1989 Honda Civic (Heavily modified)
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Section 609 MVAC Certified
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"He who fights with monsters might take care lest he thereby become a monster. And if you gaze for long into an abyss, the abyss gazes also into you." - Friedrich Nietzsche

With a 700+ credit score margins and ratio's don't mean crap, unless it's a bank which will likely sell the note to the company you should have financed with in the first place.

not true now..

do it angel.. that's cheap money... you'll never have another chance at it... i used mine for living expenses since my schooling was paid for...

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72 W114/M130

RedMeat cartoon

Absolutely! They can offer better packages and swing more creative deals...because they will sell the loan to another financier or bank within a month of closing!

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2009 ML350 (106K) - Family vehicle
2001 CLK430 Cabriolet (80K) - Wife's car
2005 BMW 645CI (138K) - My daily driver
2016 Mustang (32K) - Daughter's car