Got a Kid Heading to College? This Might Be a Smart Move
Have a rising freshman—or even a high school junior? If you’re feeling the sticker shock of college housing (which now averages $12K+ per year), you’re not alone. But here’s a strategy many families overlook:
Consider buying a home near their campus
In many cases, you and your student may qualify for a primary residence loan with as little as 5% down—as long as the student will live there full time.
Here’s why it makes sense:
- Loan programs may allow 5% down even if you’re co-borrowing with your child
- 2–3 bedroom homes can offer rental income from roommates
- You could offset your mortgage with rent—while building long-term equity
Scenario Breakdown
See how the math might work:
- Home Price: ~$300,000
- Down Payment: Around 5% (approx. $15,000)
- Student as Primary Occupant: May qualify for certain low-down-payment programs
- 3-Bedroom Setup: Two roommates, each contributing ~$900/month
- Offset Example: If your total monthly housing cost lands in the $2,400–$2,500 range (including taxes, insurance, MI), roommate rent could cover a large portion—possibly reducing your share to less than typical dorm or apartment living.
Bonus: After graduation, keep it as a rental or sell for a potential profit.
Planning Ahead? Start with Their Credit
Even if your child is years away from campus life, now’s the time to start building their credit profile:
- Add them as an authorized user on your credit card
- Help them open a secure credit card
- Teach the habits that matter—on-time payments and low credit utilization
A strong score will serve them well—whether it’s renting an apartment, buying a car, or qualifying for their own mortgage down the line.
Heads up: The minimum age to sign a mortgage (age of majority) varies by state. Most are 18—but some states, like Colorado and Mississippi, require you to be 21. BankSouth Mortgage lends in 16 states, so we can help you explore options wherever they’re headed.
Curious whether this could work for your family? Let’s run the numbers and talk through the options—I’m happy to help.
The BankSouth Mortgage Advantage
Experience the speed of ReadyApprove from BankSouth Mortgage, where you can secure conditional approval for conforming loan limits within hours.
With ReadyLoan®, you can make this process even easier. Our digital platform lets you apply, track your loan progress, and submit documents securely—all from your computer or mobile device. You’ll be armed with the confidence to quickly submit an offer, and the seller will see you as a serious, prepared buyer.
Have peace of mind with our FREE one-time rate float-down* and no lender fee refinance options!
When you purchase your home with me at BankSouth Mortgage, you may be able to refinance later with no lender fees.** This program offers flexibility as life changes, with the potential for savings when it matters most.
* One-time float down available on 45-120 day rate locks. Float down must be executed at least 15 days prior to closing and must be at least .125 improvement. ** This offer may change or end at any time without notice. “No Lender Fees” refers to waived origination charges. Eligibility conditions apply. Subject to credit and property approval.
Blog post date: Friday, July 25, 2025
