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Buying a home at a young age?

I am 19 and my boyfriend is 20. We want to buy a home but have no credit. We both have full time jobs. He brings home about $900 every two weeks after taxes and I bring home about $600 every two weeks after taxes. What kind of loan could we get and would we actually be able to afford things if we went through with this? We live in a small town in Ohio.
  • July 05 2014 - Columbiana
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Answers (6)

save, save and save now.
  • July 11 2014
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"I am 19 and my boyfriend is 20. We want to buy a home but have no credit."

That is a bad idea. Buying young is fine, but buying with a boyfriend or girlfriend at 19 is not good. Things happen and buying is business. 

Do not buy a property together if you are not married without a fully drafted legal partnership agreement spelling out who pays what, what happens if someone cannot pay, what happens if one wants to sell and the other doesn't, what happens if one wants to move and rent part of the house out, what happens
 if one wants to sell and the other doesn't, what happens if one of your dies etc.

I would take the time now to build both your credit scores and some savings for a down payment or closing costs. You can get an FHA loan with about 3.5% down and minimum credit score, but you will have extra fees and costs for the FHA each month. If you can come up with 5% down you will pay less in costs, but may need a higher credit score.

Take time to learn about buying first. Give your relationship time to grow. Work on your credit. Make a plan. Then see if you are ready to buy. You may hear people tell you to get a cosigner, but if you love them, you will not tie their credit to a boyfriend's credit for 30 years. It is a mistake. Do what you can to get ready, then buy.
  • July 11 2014
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Kimberly Lawson, in her reply, is dead on. There are several ways to evidence non traditional credit. 
  • July 11 2014
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You want to partner up and buy real estate, and the two of you are making, what, $45,000 gross annually? I suppose you could do this, but there's a lot of exposure here - if he loses his job, you're going to have to make the payments, which could be as much as $1000/mo, Plus, you didn't mention if you had any savings, but we advise people to have six months' living expenses saved up before buying a house, which in your case, is what - $18,000 or so?

You will need a partnership agreement, because one of you may want to sell the property, and you want to have that figured out before rather than after. When you sell it, how will the profits be divided up (or the losses shared), that sort of thing. If you decide to rent it, how will the rents be divvied up? And, if the house requires repairs, how will that affect things?

You're not too young, but you may need to bolster savings and/or income before investing in real estate.

All the best,

  • July 11 2014
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Hi, (Sorry if this is a duplicate post, first reply didn't seem to post.)  ---  No one can discriminate against you base on your age. If you do not have credit, we'd need proof of a rental history and proof of other non-traditional accounts that you pay (12 months history) and can get letters from to verify your payment history. From there, it's based on your current debts vs income and your assets to see if we could get you qualified. If I can answer any add'l questions, I'd be happy to help. Best wishes otherwise, Kimberly Lawson, Licensed Mortgage Loan Originator. Contact and licensing information can be found on my profile.
  • July 11 2014
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You should speak with a lender in your town. Chances are you will need to build some credit first, and save some money. But a conversation with a lender will help guide you in the right direction.

Take care.
  • July 06 2014
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