I own a condo in the Los Angeles area and am single, so there are no outside sources of income!
I looked into my options CAREFULLY.
If I moved to a city outside of LA, this meant I'd have to sell the condo. If I didn't re-invest immediately I would be hit with capital gains and/or be denied financial aid by having too much money in the bank. And, if I wanted to get another loan, I would have to disclose that I had no income other than student loans --- which is something lenders don't want to hear.
A number of lenders whom I consulted flat out told me to LIE ON THE APPLICATION!!! However, how would that going to look on a background check?!!! My guess is that it could potentially be big trouble!
I made the choice to enter a less-attractive law school near LA and make a very long commute. The good news is that I'm in the top 15% at my school and my condo has increased in value by $200,000 -- which will pay for my law school. And, I don't have to worry that my honesty might be called into question -- or that I might be denied loans.
It may not have been the ideal situation, but I didn't have to worry about making false statements on a loan application!