One popular loan option for parents with children going to college is the FHA Kiddie Condo loan. The FHA kiddie condo loan is popular because it essentially allows parents to buy a home (note: it doesn’t have to be a condo) and have the student live in it.
Heck, it even allows the student to let his or her friends live there and charge them rent!
One of the requirements for the FHA kiddie condo loan is that the “kid” needs to have a credit score that is above 620.
Here are 3 good ways to get a credit score if you are a student:
- Get a credit card. Yes, credit cards are evil – but only if you use them wrong! If used properly (get a card, buy something, pay the bill when it comes) they will help you build credit.
- Get a car loan. Even if your parents want to / can afford to buy a car outright, get a car loan in your name and make payments each month. The interest rate on a car loan will be much lower than a credit card.
- Get a cell phone – or if you have a cell phone, get an account in your name. Most cell phone companies report to the credit bureaus – which will help build your credit.
Remember – starting to build your credit can cut both ways. If you get a credit card to help build your credit, make a purchase and then don’t pay the bill? The good news is that you will have a credit score. The bad news is that you will now have a bad credit score.
More From Arizona Mortgage Team
- Arizona FHA Loans: Most Lenders Now Requiring A Minimum 620 Credit Score For Arizona FHA Loans
- The FHA Streamline Refinance: Do You Need A 620 Credit Score?
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[...] FHA Kiddie Condo Loans: Credit score required – Just last week I was working with a medical school student looking to purchase a home in the [...]