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What's the earliest you can buy a house?

oiprocs

oiprocs

Diamond Member
Seriously though, would you buy a house @ 18 years old? How about 20?

Or does age not matter? You'd buy if the location were nice, you like the city, you like the price, etc.

For what it's worth, I'm 22 and I'm thinking about buying a house in the area where I go to school. I don't really want to rent for the next year because I see that as lost money. However, I can't say that after I graduate I will stay in that area. So that makes it clear that buying is a bad idea.

But all that rent money....
 
Between taxes, insurance, interest, and the costs of maintaining a property, rent can seem like nothing.
 
If you don't plan on staying for more than 3 years, with 5 being more ideal, then keep renting.

You said you were still in school. What happens if you don't find a job immediately after you finish around where you live and need to relocate?

If you buy a house you are essentially in the hole for 5-7% right off the bat because of losing out on realtor fees if you need to list it.
 
dont buy unless you know youre goinng be somewhere for a few years at least, if you dont know, theres no way itll be worth the trouble.
 
Sometimes buying a house in a college town can actually be profitable, if you're willing to put up with house mates, deal with repairs, etc. That's a personal decision of course. You could always hire a management company to handle it for you even after you've gone. As long as the rent money covers the payments and repairs at a breakeven point you'll be building equity in the property.
 
I know a few guys that bought a house in college, for college charged friends to live there and then sold it afterward.
 
You have to have a stable job in the same field for 2 years and the income to support a house payment, along with the legal ability to enter into a contract.
 
It is extremely, extremely unlikely that you will come out ahead by buying and selling in one year's time instead of renting. Closing costs on the house will destroy any equity you put into the house.
 
I bought my first house for $120k around 1992 when I was in my mid 20's. Even with today's drop in real estate values, that house has increased in value to nearly triple the price I paid for it, and I have been renting it out for the past 8 years. I bought my second house which I currently live in in 2001. Combined, they are both worth appox $690k today. Getting into real estate at a young age was probably the best financial decision I ever made.
 
One of two things... you will either have a FICO score or you won't. If your FICO score is good, you have downpayment money, and a stable work history sure.

If you don't have a FICO score (meaning you never used credit) then you will have to show a lot more history. At 22 that may be difficult, especially if you just got out of school.

Best thing to do is call a mortgage broker or bank and fill out a prequalification. Then you will see how far you can get.

If you think you are going to move.. buying for a year may not be the best when you consider closing fees, realtor commissions, etc. Its not like it was a couple of years ago where you could buy then sell in 6 months for 30% more than you paid for the place.

EDIT: and if you do rent... don't get the most expensive place you can find... use that year to sock away more downpayment money.
 
good luck trying to get a bank to approve a loan for someone who's a full time student in today's lending world. Even if you had the downpayment, i dont see any places willing to setup a mortgage to a student who doesnt have a steady job. or if you do, it is unlikely to be paying enough to actually equate to a large enough mortgage to buy a decent place.
 
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