How Old Do You Have To Be To Buy A House?

With Gen Zers now entering prime home buying years (25 – 45), some may wonder, “How old do you have to be to buy a house?” Read on to find out and what to consider before buying your first home. 

At What Age Can You Buy A House?

You must be 18 years old to buy a house in most states, but some states have higher age requirements. In Mississippi, you need to be 21 years of age to legally buy a house. In Alabama and Nebraska, the minimum age to buy a home is 19 years old.

To find the minimum age requirement to buy a house in your state, research its “age of majority,” the legal term used to describe when citizens are considered adults.

Special Considerations For Buyers Near The Legal Age To Buy A House

When considering buying a house, determining whether you’re old enough is step one. Then you must consider other factors unique to young buyers that could present challenges:

• Younger buyers might have a shorter credit history. Lenders look at your credit history to help gauge the risk of lending to you. Being younger means you’ve had less time to demonstrate that you’re a responsible borrower, and you may have a harder time qualifying for a mortgage as a result.
• You’ll have less time to save for a down payment than older buyers. Most mortgages require a down payment to qualify. Unless you qualify for a VA loan or a USDA loan, the minimum down payment you’ll be required to make is 3% – 5%. On a $300,000 house, that’s $9,000 – $15,000. When you’re young, you’ve had less time to save up that kind of cash, so you may not be able to make a sufficient down payment.
• Some lenders prefer a 2-year work history for certain home loans. For example, the Federal Housing Administration (FHA) verifies prospective borrowers’ employment for the most recent 2 full years. Any employment gaps must be explained and may result in being denied the loan. Consequently, younger buyers with less work experience may face a disadvantage.  
• Student loans and credit card debt will affect your approval chances and interest rates. According to Debt.org, as of December 4 2023, 58% of adults 18 – 29 years old have student loan debt. Meanwhile, the same age group carries a collective $80 billion in credit card debt. Both debt types can lower your debt-to-income (DTI) ratio and hurt your ability to secure the lowest available interest rates or even get approved for a mortgage.

Pros And Cons Of Buying A House At The Legal Age Vs. Waiting

As with most things, there are pros and cons of young adults buying a house versus waiting until an older age. Consider the following:

Questions To Ask Before Buying A House As A Young Adult

Before buying a house as a young adult, here are some questions to ask yourself:

Do You Have A Stable Job And Income?

As a prospective first-time home buyer, having a stable job and income not only helps you secure a mortgage but helps ensure you’re in a financial position to take on the loan. After all, you wouldn’t want to be stuck with a mortgage payment you can’t afford because you lack a job.

Are You Ready To Live Somewhere Long-Term?

Conventional wisdom says that you should plan to stay in a house for at least 5 years if you want to buy it. That’s how long it takes, on average, for the investment to make up for closing costs and fees, and other home buying expenses.

Furthermore, some mortgages have a mortgage occupancy clause that requires borrowers to live in the home for a certain period after purchase (usually 6 – 12 months) to protect against mortgage fraud. This, too, should be factored into your home buying decision.

Do You Meet The Credit Requirements For A Mortgage?

The credit score required to buy a house varies by lender. A conventional loan requires a score of at least 620. However, some loan programs may be more lenient. For example, FHA loans typically require a median credit score of 580, while it may be possible to qualify with a score as low as 500 depending on how much you have for a down payment. For those with a credit score below 620, an FHA loan may be a good option.

Do You Qualify For Any First-Time Home Buyer Programs?

There are many first-time home buyer programs that can offer financial relief to young buyers in the form of down payment assistance, closing cost assistance or grants. Here’s a breakdown of each and what it typically takes to qualify for them:

• Down payment assistance: These programs help increase your down payment by matching your savings, offering loans or providing cash grants. Common qualification requirements include meeting specific income limits, completing a home buyer education course, and occupying the property for a certain period after the purchase.
• Closing cost assistance: These programs help cover your closing costs, which are usually 3% – 6% of the purchase price. Qualification requirements are often similar to those for down payment assistance, such as meeting income limits and completing a home buyer education course.
• Grants: A grant is essentially money given to a prospective home buyer with strings attached. For example, the recipient may be restricted to using the money on a primary residence in a particular geographic area. If the funds aren’t used as stipulated by the grant donor, you may be required to pay them back.

Do You Have Enough Savings For Unexpected Expenses?

Maintaining an emergency fund for unexpected costs of homeownership is crucial. You never know when you might need to replace the roof, hire a plumber or get the HVAC system fixed. Furthermore, the cost of utilities, property taxes and homeowners insurance can fluctuate. If they go up one month or year, it’s important to have sufficient savings to cover the extra cost.

At What Age Can You Legally Buy A House? FAQs

Here are answers to frequently asked questions regarding the required age to buy a home:

What’s the average age of home buyers in the U.S.?

According to the National Association of REALTORS^® (NAR), the median age of U.S. home buyers in 2023 was 49. That’s down from a record high of 53 last year. First-time buyers in 2023 were a median age of 35, while repeat buyers were a median age of 58.

What’s the best age to buy a house?

It depends. If you’re in a financial position to buy a house and you’re prepared for the commitment, any age at or above the legal age requirement could be a good time. If you lack financial stability or you’re unsure about where you want to live over the next 5 years, delaying homeownership may be the better option.

Can a 17-year-old buy a house with a co-signer?

Potentially. To enter into a home sale or mortgage contract, you must be the age of majority, which is 18 or older depending on the state. Consequently, a 17-year-old would need a legal guardian to sign the contract(s) on their behalf.

A co-signer is someone who guarantees a loan if the borrower defaults. A 17-year-old would likely also need the guardian to be a co-signer to get a mortgage. However, depending on their financial situation and the lender’s requirements, a co-signer might not be required. 

How old do you have to be to be a cosigner on a mortgage?

To co-sign on a mortgage (or any contract), you must be the age of majority. In most states, that age is 18. In Alabama and Nebraska, it’s 19. In Mississippi, it’s 21.

What are some tips for young adults entering the real estate market?

As a young adult looking to buy a home, first get your financial house in order. This means securing a stable income, minimizing existing debt and saving up for a down payment, etc.

From there, shop for homes within your budget. Follow the 28/36 rule, which requires that your monthly mortgage payment be no more than 28% of your gross income, and your total debt no more than 36%.

Finally, do your due diligence on the deal and property, and don’t be afraid to delay homeownership if the math doesn’t work in your favor.

The Bottom Line

Ultimately, the minimum age to buy a house varies by state. But your ability to buy a home depends on many other factors, including your financial stability, creditworthiness, savings for a down payment and closing costs, employment history and more.

If you’re ready to take the plunge, apply for mortgage approval with Rocket Mortgage^®.