Can I use a student line of credit as a downpayment on a house?

So heres my thought process…

I have a student line of credit (not a loan) for $10,000, and can increase that up to $40,000.

My school is totally paid for and my line of credit is only to cover living expenses while I'm in school so I can focus on my studies.

Ive been thinking about buying a house and living in the basement while renting out the upstairs to other students. In my area renting out 4 bedrooms in a house is enough to pay the monthly mortgage cost and house expenses and save a little each month as a rainy day fund.

What I'm wondering is if I can use my line of credit as a downpayment for a house? The line of credit terms state that you can use it for any school or living expenses while in school. So if I'm going to be throwing $10,000/ year to pay rent to someone else, is there any reason I can't just use the $10,000 or more to buy my own house to live in? It seems to make more sense since then I wouldn't be just throwing my money away in a rental and if I ever were unable to repay my student loan… Which of coarse is not the idea… I have the money in a house where the bank is guaranteed to get their funds back. If I just gave my money to a landlord I could be $30,000 in dept by the end of my degree with no guaranteed way to pay it back.

Does this make sense or am I missing something important here? Thanks!
Added (1). Addressing the first few points:

I can take the money totally out in cash and go buy a car with it, or I can stick it in a checking account… So it is real cash money. The line of credit terms state you can use it for transportation and living expenses ( which includes food, housing, utilities, buying vehicle). Is buying a house not a housing expense? The idea is to work part time and save the money to cover future vacancies.
Added (2). Also the institution I would be getting a mortgage from does in fact recognize rentals as a source of future income, and I'm mortgage cosigner has a full time job of 3 years

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