Many people want to be able to buy a house young in their 20s, but do may not know where to start or if they even can.
HOW TO BUY A HOUSE YOUNG
When I was 18-19, I knew I wanted to buy a house instead of spend money on rent. However, I had no idea where to start or how I would get there. These are my tips to how I was able to afford buying a house at 24!
DISCLAIMER: I know I was very fortunate with my background and situation, but just know that you can also make your situation fit your goals! It may look different, but I do believe you can. Buying a house young can be done!! Just trust the process and have an eye on your goals.
1. Build Your Credit To Buy A House Young in your 20’s
I got my first credit card with no annual fee at 18. All I put on there was my gas on my 2004 Toyota Camry and that IS IT!!! I did not put anything I knew I would not be able to afford. I was waitressing at the time so I knew I could pay about $70-$100 at one time when my credit card bill was due. A lot of people say to pay your credit card as you go, or there are different methods. I kept it super simple and would just pay the day of my statement period.
I was never late on paying my credit card and my only focus was to just build my credit score! I would later add on a few credit cards when my score would go up, but that is about it! I kept my credit card purchases very minimal!
2. Live At Home in your early 20’s
This may not work for everyone, but it definitely played a key role in saving as much as money as I needed to. I had no idea how much I would need to buy a house at this point, but I knew I had to save. Living at home meant most of what I made went to savings, but I also spent a lot of it on “fun stuff.” I would save at least half of what I made in a week since I was making cash as a waitress. I did pay a few tuition bills here and there, but most of my college was paid for.
3. College
So I knew buying a house would not be for free or as low as I did it, but I did know that I could do it somehow. My first semester of college I went to a state college and stayed in an apartment. I hated it! I wanted a smaller college setting where I could come and go as I please, so I did that after three months.
I transferred over to a smaller college that was super commuter friendly and I waitressed my way through! I would pay a little of my tuition, but most of the time I would be working 40-50 hour weeks.
Obviously, this college was SO much less expensive and my financial aid did help a lot. Living at home was super nice as well! I really had barely any college expenses, it was a blessing. Now this may not be the case for you, so I would look at my next tip!
4. Budgeting to Help Buy Your First House Young
So, like I said I was at home and I was paying very little for my college education. Sounds like the dream? Yeah, but I had a budget. I had to have this budget in order to start to plan to buy a house! I knew I needed to start somewhere or else I would end up nowhere. If that makes sense.
My budget was pretty simple at the time since I had very few bills and I was working 40-60 hour weeks just waitressing. Which is crazy to think about right now! My college was pretty straight forward, we would have class and I would leave and thats it. Most of my time was around working.
ANYWAY, this is a clear view of my budget per week and a generic example! (since it was mostly cash and instant money waitressing):
Income: $700
Bills: $200
Fun Money: $200
Savings: $300
As you can see, my savings HAD to be more than the rest! I wanted to focus on saving but also reward myself and be a “college student” without spending SO much money on the college experience. I can do a whole post on that as you can see. I think it was the reason why I got to where I got to in order to buy a house so young in my 20s!
{RELATED POST: Life-Changing Budget Tips for Beginners}
5. Pick a Trustworthy Lender/Bank
Do your research or ask around your friends and family. Your lender is what will make or break a deal! They will tell you exactly how much you can afford and also give you some great first time homeowner’s programs that have lower interest rates and NO down payment.
YES, my first house I bought had no down payment. I only paid for closing costs because I was a first time homeowner!!! How cool was that? I ended up spending way less than I thought and I was able to budget my furniture since I really had nothing.
BTW: I did get a FHA loan with 3.5% down payment that was waived off. I can also do an entire post on FHA loans and how helpful they can be when you want to buy a house so young!
5. Have Realistic Goals
Your first house will probably not be your forever home, so do not think you are going to be living in a mansion. For most of us, you are fresh out of college and have an entry-level job. You want to be able to buy something that is good for now. Also another tip is, think about your first house being a potential rental property for you later on? This may not be the case or vision for everyone, but it certainly was for me! I want to get into real estate eventually and I know my first house (1200 sqft) would be perfect as a family rental later on!
6. Be Easy on Yourself
Not everyone wants to buy a house young and that is totally okay. Do not pressurize yourself that you HAVE to buy a house by 21 or 30 or whatever age. “What happens if you never buy a house?” First of all, so what? Homeowners have a lot more responsibility anyway! Maybe it is not for you.
However, I do believe that if it is something you really want and you are able to work hard for it. You can do it. I 100% believe in that for buying a house young or whatever else it may be! You CAN do it!
Conclusion
EVERYONE has different situations and different timelines. You should not stress about what will happen, but what you can do about it. Work hard, plan ahead, and you should be able to buy a house young!
This post was all about how to buy a house young in your 20’s!
