How Old Do You Have to Be to Buy a House?

Are you starting out as an adult and looking to get a jumpstart on home ownership? If so, you may be asking, “How old do you have to be to buy a house?” 

Legally, anyone who is 18 years old or older can purchase a home in most states. However, saving up the money needed for a down payment and building an adequate credit history can take some time. 

How old do you need to be to buy a house?

You need to be at least 18 years old to purchase a home. That’s because 18 is the legal age of majority in most states, meaning you can enter into binding contracts. If you’re under 18, you typically cannot legally sign a mortgage contract on your own. 

Why lenders care about age

Mortgage lenders cannot deny you a loan simply because you are young. What they care about is: 

• Whether you can sign a contract legally
• Your employment history
• Credit score and history
• Income stability
• Debt-to-income ratio

If you meet the criteria for a mortgage, you can get approved and buy a home. 

Financial requirements for first-time buyers

Asking, “How old do you have to be to buy a house?” isn’t the most important factor. If you are an adult and want to step into homeownership, you need to meet the financial requirements. 

Minimum income and ability to pay

There’s no universal minimum income required to buy a house. Instead, lenders look at whether you can reasonably afford your payment, property taxes, homeowners' insurance, and existing debts. 

If your debt-to-income (DTI) ratio meets their criteria, you can get approved. However, young buyers sometimes struggle because they are early in their careers. 

Down payment and closing costs

You will likely need money up front for a down payment and closing costs. A down payment is usually 3% to 3.5% of the home’s purchase price, but it can range from 0% (for USDA or VA) to 20%. There are first-time homebuyer down payment assistance programs that could help reduce your out-of-pocket costs. 

You’ll also need to cover closing costs, which are typically equivalent to about 2% of the home’s purchase price. Start saving early to get a head start. 

Credit requirements

Lenders will make sure you meet certain credit requirements before approving a mortgage. 

Minimum credit score

You will need a minimum credit score of 580 for FHA loans, 620 for VA or conventional loans, and 640 for USDA loans. There are some loan options that accept a lower credit score, but you will have to put more money down. The higher your score, the better interest rate you can qualify for. 

Building credit as a young buyer

Many young adults have a thin or nonexistent credit history. If you’ve never had a credit card or loan, lenders will have little information to evaluate your reliability. That can make it more difficult to qualify. 

How to build credit to buy a home

If you’re just starting out, you can build credit by:

• Opening a starter credit card
• Becoming an authorized user on a parent’s account
• Reporting rent payments to credit bureaus
• Keeping balances low

Platforms like Kikoff help people with thin or rebuilding credit histories. You can add positive payment activity to your credit profile. 

How parental support or co-signers can help

Parents or other trusted, established adults may be able to help you buy a home. You can tap into this support in a couple of ways. 

Using a co-signer to meet lender requirements

A co-signer with a strong score and established credit history may help you meet a lender’s mortgage requirements. However, it needs to be someone you trust (and who trusts you), as they are basically taking responsibility for your mortgage if you fail to make payments. 

Gifting funds for a down payment

Parents or others can gift funds toward your down payment. Ask your lender about documentation requirements for gifted funds. 

Conclusion

You can buy a house at 18, but age is rarely what actually stands between a young adult and a mortgage.

Lenders care about your credit history, income stability, and debt-to-income ratio, which are all things that take time rather than a birthday. A thin credit file is generally the biggest obstacle for first-time buyers in their early twenties.

Start saving for your down payment and closing costs now, and consider whether a co-signer or gifted funds could bridge the gap.

Kikoff gives eligible users rent reporting and access to a Kikoff Credit Account with no hard credit check to sign up, with monthly payments reported to all three credit bureaus.

Build credit with Kikoff and start building the history a lender will want to see.