The U.S. Census Bureau estimated that in 2020, 23,8 percent of people who were 25 years old or younger were homeowners. When you consider how tough it is to become a homeowner at a young age, that is a rather outstanding number.
Let's look at what age you need to be if you're young and want to purchase your first home, as well as how age can affect the process even if it doesn't legally prevent you from doing so.
Property ownership is possible, but self-purchase is not permitted. Once you turn 18, you typically have reached the age of majority and can sign the legal paperwork needed to purchase a home.
This means that you can legally purchase a home on your own in the majority of states starting at the age of 18; however, the age of majority is 19 in Alabama and Nebraska. Since few minors have the means to purchase a property in any case, most people find that age minimum to be appropriate.
However, today's youth generate their own income by becoming internet sensations. Can you buy a house at 16, or even younger, if you have the money? The answer is theoretically "yes," but since you are still a juvenile, you will need a cosigner who is of legal age (maybe a parent).
Refocus on potential homeowners over the age of 18, as they are more likely to be prepared to do so than the typical adolescent. When applying for a mortgage loan, young people may encounter obstacles (unless you can make an all-cash offer). To get approved for a home loan at any age, you must satisfy the lender's requirements, and being younger can make that more difficult. How so?
When you're young, it might be challenging to convince a lender that you have the financial means to pay your mortgage because you need to have a history of steady employment. Furthermore, if you're young, your credit score probably isn't that good yet. It takes many years to get a strong credit rating, which makes it simpler to be approved for a mortgage.
You can obtain a mortgage without having a high credit score if you have enough cash on hand to pay for a sizable down payment and closing charges. However, a low credit score increases your risk of paying higher interest rates, which can substantially raise the cost of ownership over the course of your loan.
If you want to read more articles like this, here’s one about the credit score you need to buy a house.