by Katy Knapp
Daily Lobo
Sophomore Ben Chwerka lived in Hokona Hall for a year before he decided to move off campus.
"I lived the experience and wanted to see what is was like to own a house," he said.
Ben cosigned on a loan with his parents to purchase a house near the University. He said he brought the idea to his mom and dad.
"They liked the investment idea and went along with it," Ben said.
Nola Findlay, a loan officer for First Community Mortgage, said over the past 15 years, she has seen a lot of parents who buy homes for their kids to live in while going to college.
She said there are two main advantages to parents taking out a mortgage on an investment property. She said because it is considered an investment property, parents can use the interest as tax return.
Joe Chwerka, a civil engineer, said he and his wife decided to get a conventional loan with Ben because after sending two kids through college, they could get money back on their investment when both graduate in eight years.
"It was a good investment," he said. "We looked at the economy and house prices haven't gone down in years. I may get my money back, but who knows."
Joe would not comment on the price of the house or the amounts of the monthly mortgage payments but said his son has roommates to help with the cost.
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"It's important to get kids to live there who can take care of it and not tear it up," he said.
Findlay said paying rent is fine to do, but no equity is being built in an investment.
"Rent and mortgage payments might equal out," she said. "But when they're done with school they have a property to sell, and the property could be worth more at the end of four years."
Findlay said most parents look at buying homes in the University area, which due to high market demand, prices have skyrocketed over the past few years.
She said at the very low end of the market, potential buyers could purchase a home for $130,000 to $140,000.
"You'd be really lucky to find anything less than that in the immediate UNM area," Findlay said.
Findlay said the Federal Housing Administration Kiddie Condo loan is an alternative to a conventional loan for young adults wanting to cosign on a home.
She said if parents choose the FHA loan, they are faced with lower interest rates and down payments because an occupant for the home is already chosen.
"Statistically, if you live in the property, then you are less likely to default on the loan," she said.
Melanie Sparks, housing director at UNM, said as of Friday there were 2,086 students preparing to move into the dorms. With roughly 26,000 students enrolled at UNM, that leaves a big number of students who live off campus.
Ben, a media arts major, said three of his friends - and now roommates - pay $360 a month each to live in their four-bedroom house on Princeton Drive.
Joe said Ben has to help keep the house nice by mowing the lawn, but Ben said his parents have not been too intrusive.
"They've been pretty lenient so far," he said.
