In this video, I show you that it is definitely possible to buy a house at 18 years old!
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0:00 – Intro
01:30 – Requirements to get a home loan
01:49 – First requirement – Income
04:00 – Second Requirement – Credit scores
07:06 – Third requirement – Money for down payment and costs
07:45 – First time home buyer programs
08:17 – House hacking
09:17 – Closing costs
09:40 – Get a gift
10:40 – Outro
There are basically three things that you are going to need to get a mortgage loan – Income, Credit and Assets.
Most people don’t know, but education counts towards employment history. Every mortgage lender, in order to get a mortgage loan, is going to want two years of income, and obviously, if you are in high school unless you’re doing odd jobs and reporting them on your taxes or working part-time, it’s going to be really hard for you to have two years of income.
The second thing that you are going to need is credit. And obviously, if you’re just 18 or 17 years old, or even 19 then you know maybe your credit history might not be that big because obviously you are just getting started in life. But if you don’t have any credit, this is the time for you to start building credit right now. And what do you need to do is first and foremost, you want to hop on your parents’ credit cards as an authorized user. This will be the easiest way to generate a credit score.
Finally, you are going to need some money to purchase the home. There are programs that allow you to get a home loan with just 3% down. So for instance, if you’re buying a $200,000 house, you will need $6,000 for the down payment. Look closely at two main programs, the HomeReady and the HomePossible mortgage. These two are great options for first-time home buyers. Also, think about the closing costs of buying a home. These can be around 2-3% of the purchase price. My recommendation is to have 5% overall to purchase a home. You can get a gift from your parents or family members as well for the whole down payment if that’s an option for you.
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I do not provide personal investment advice and I am not a qualified licensed investment advisor. I am a licensed mortgage loan officer. All information found here, including any ideas, opinions, views, predictions, forecasts, commentaries, suggestions, or stock picks, expressed or implied herein, are for informational, entertainment or educational purposes only and should not be construed as personal investment advice. While the information provided is believed to be accurate, it may include errors or inaccuracies.