“After college” – Moving

[email protected]

I am a Villanova grad (’84) and currently working as a residential real estate financing consultant for Countrywide Home Loans – the largest mortgage lender in the US.

I noticed on your “After College” section there is no reference to the (better) alternative of buying a condo or single family home instead of renting. There are financing programs with no down payment requirements which along with seller’s assistance with buyer’s closing costs could allow a qualified buyer to purchase a property with as little as $1,000.

As far as monthly cash flows, a $985 rent could actually be more costly than the equivalent expense of the homeowner of a 100% financed $170,000 2 bedroom 2 bath condo (principal, interest, taxes, insurance and association dues included). The buyer could still have a roommate to offset the mortgage payment and avoid all the risks and pitfalls of dealing with landlords (as stated in your “Moving” section).

On other general requirements:

Job History: Buyer only needs to provide proof of having been a full-time student for the prior 2 years and show 1 month of consecutive paystubs from his/her new job.

Credit History: Buyer needs to have a minimum of 3 accounts (i.e.-cell phone, cable and telephone) + a rental reference, all in good standing, for the prior 12 months, and under the buyer’s name.

Affordability: Specific debt-to-income ratios will be applied to determine maximum loan amount.

Reserves: May be required to show 2 months worth of mortgage payments saved in a bank account prior to settlement.

Please let me know if you would be interested in featuring an article addressing the issue of owning your home versus renting. I would gladly assist.

Regina Mauro610-280-0887