Anybody put their home on line for nursing school

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Has anybody put their home on the line to go to nursing school? Things haven't wrapped up quite as nicely as I had hoped and so I may not be able to make my mortgage once school starts. I'm 41 so I kind of feel like it's now or never and I think I'm willing to risk it. Anybody else put themselves in this position?

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Specializes in student; help!.

You mean selling it, not defaulting, right?

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I have to make some HUGE assumptions to try and answer this. I'm going to assume that, at 41 you've had your home for a bit of time and have some equity. I'm also going to assume that you're talking about taking out some sort of equity line of credit or a 2nd mortgage to pay for your education.

Frankly, I would never cross that line. If you want to sell the house (is the market good where you live?) then use the profits to finance your education, you need to go into it knowing that you're losing ground financially because the fastest way to build wealth is to own real estate. It's one thing to make some financial mess when you're 23...it's a whole different deal once we're in our 40s.

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I do mean selling it. My husband is unemployed (construction sales) and we are having problems on top of that. Everything has been on my shoulders for years which is partially why I'm looking into changing careers. I would like to downsize and just get a small apartment for the next couple of years while I'm in school. I really would like to rent out my house and do something smaller/cheaper while I'm in school but my husband refuses to leave the home unless we sell it.

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I do mean selling it. My husband is unemployed (construction sales) and we are having problems on top of that. Everything has been on my shoulders for years which is partially why I'm looking into changing careers. I would like to downsize and just get a small apartment for the next couple of years while I'm in school. I really would like to rent out my house and do something smaller/cheaper while I'm in school but my husband refuses to leave the home unless we sell it.

Well, then, I completely get it. I would agree with your husband on selling the house outright rather than renting it out; I'm sure he's seen some cases where renters destroy a home and then it costs the owners a fortune to fix it up to sell after they're gone. I once rented a home and the owner told me the previous tenants STOLE THE TOILET out of the house when they left. Really? Do those have a high value at the local pawn shops?

Anyway, if money is tight and you are looking to essentially start over career-wise, financially, etc. then it makes sense to sell and get that fresh start. Renting something cheap will give you an opportunity to save up for a new home once you get your career off the ground and are ready to go at it again. Having a rental without all the homeowning responsibilities (yard work, routine maintenance, unexpected repairs, etc.) might free your husband up to look at making a career change as well.

Whatever you decide, best of luck to you both!

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You also have the responsibility of the home when you rent it out and perhaps your husband doesn't want those calls as well. If something is not working, you will get the call and the bill so you are the owner keeping it up, paying for the upkeep, but not enjoying the living in it part. Of course, you are saving mortgage but you are paying rent elsewhere with the home hassles. I would go with the no stress route (not that selling a home is stress free) and sell the home to do school because if things are tight now and you add stress of school and payments.......If kids are involved then that is a complete other issue. I wish you the best with this difficult decision.

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Well, then, I completely get it. I would agree with your husband on selling the house outright rather than renting it out; I'm sure he's seen some cases where renters destroy a home and then it costs the owners a fortune to fix it up to sell after they're gone. I once rented a home and the owner told me the previous tenants STOLE THE TOILET out of the house when they left. Really? Do those have a high value at the local pawn shops?

Anyway, if money is tight and you are looking to essentially start over career-wise, financially, etc. then it makes sense to sell and get that fresh start. Renting something cheap will give you an opportunity to save up for a new home once you get your career off the ground and are ready to go at it again. Having a rental without all the homeowning responsibilities (yard work, routine maintenance, unexpected repairs, etc.) might free your husband up to look at making a career change as well.

Whatever you decide, best of luck to you both!

The toilet was most likely stolen because it was one of the older ones that was not low flow, a very treasured commodity on the toilet market. I rented my home out and can testify to the damage tenants can do, on purpose for the most part. The last tenants destroyed my home and expected me to allow them to live there rent-free because of the damage they did! The property manager was worthless, all talk and no accomplishment. I bailed and lost well more than $100,000 when the house had to be sold "as is". I never had intentions of selling. I considered it my home, not just a building. Now I'm paying rent to live in a dumpy apartment with a nutjob neighbor who won't let me enjoy peace and quiet. I lost out on both school and eventually my home when I lost my job. I advise you to sell the home while you are not under pressure to get rid of it. Don't lose money on it in the long run, like what happened to me.

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It is very hard to turn a profit with a rental property, and if you are struggling with your housing payment now, moving into an apt will not help (in todays market many homes are being rented out for less then the morgage payment (that is my situation, I could not afford the morgage payment on my condo now, but the rental fee is very nice) so you might end up in a tighter hole. Either get a HELOC or sell IMHO.

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Specializes in student; help!.

You are going to be too busy with school and your DH trying to find a job. You do not need the hassle and financial drain (yes, drain) of a rental. Rentals are worth it when you own them outright, not when you're trying to cover a mortgage.

Sell it, rent a cheap place, and skip the drama and time suck of a rental.

Check out Dave Ramsey while you're at it, trust his advice. Do NOT take money out of the house, just sell it and be done. Taking on more debt while you're both unemployed is just asking for trouble, and wouldn't it be nice to not have to worry about doing repairs or taking calls from ******-off neighbors about parties and fights?

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Specializes in Peri-op/Sub-Acute ANP.

You have received some good advice. My only additional caution would be for you to avoid trashing your credit in any way while in school - even if this means putting off school for a while. Many people think that they will get out of debt once they have a great new nursing job. The only problem with that is that employers are increasingly checking on the credit status of applicants. Don't do anything with your credit that may prevent you from getting that "great" job once you graduate. I guess I'm saying that you should make sure that your finances are as stable as they can be before you commit.

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I sold my home and used the proceeds to pay for my first year of school; unfortunately, in this market, that was all the proceeds I could get. I'll still have around 30K in loans, but... it is what it is, I suppose.

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Depending on how much equity you have in the house, it might be smarter to sell and then buy a cheap condo or something that you can pay for outright. That way you are still maintaining equity, rather than throwing out money each month on rent.

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