Too Young to Buy A Home?

The average age of a first-time home buyer in the United States is 38 years old, according to the National Association of Realtors. This is an all-time high. However, contrary to what some might think, most states allow you to purchase a home as young as 18 or 19. And mortgage lenders don’t base their decisions on an applicant’s age.

Logistically speaking, buying a home in your 20s is no different than buying one later in life. But if you’re thinking about buying real estate at a young age, there are many things to consider.

Money and credit

The most obvious ingredient to home ownership is money. And many young people are not financially prepared for the costs associated with buying and owning a home. For starters, you’ll need a decent credit score to qualify for a mortgage. You’ll also need the capital to make said mortgage payments. A big step in paying off your home is making a down payment, which might not be achievable for people in their 20s. You’ll also need to move your belongings, which has its own costs (even though there are ways to mitigate them).

Another thing to keep in mind about owning a home is that you, not a landlord, will be responsible for home projects and upkeep. This won’t only cost you money, it’ll cost you time. So, if you’d rather spend your 20s traveling or hanging out with friends, you might not be ready to own your own home.

Personal goals

If you’re considering home ownership in your 20s, think about why you want to buy a home. For some people, the idea of early home ownership means fewer mortgage payments later on. Buying a home sooner rather than later might be the right move if you plan on living in one location for a good while. But if you like the idea of moving at the drop of a hat, home ownership at a young age might make you feel trapped, and may not be the best move for you.

Homeownership goals aren’t the only things you should consider if you’re thinking about buying. It’s also wise to consider education, career, travel, and relationship goals. These factors all play a role in determining when you're ready to buy.

Plan on staying awhile

Although this is obvious, it’s important to reiterate that if you buy a home, you’ll be there for a while. Real estate experts recommend staying in a home for at least 5 years so it can appreciate in value. Keeping a newly purchased home for at least five years can also prevent you from having to pay short-term capital gains taxes and other costs. If you, without a doubt, want to live in a home for more than five years, it may be advantageous to buy.

Be sure to do your research on the house itself before buying. Talk about the home with the seller, and request a home inspection to identify potential issues before making an offer. It’s also a good idea to request a home appraisal before buying to ensure you’re paying a fair price. Other things to keep in mind before buying include home location, type of house, and associated property taxes.

Final thoughts

While buying a home in your 20s could mean fewer mortgage payments later, it could also leave you feeling trapped. Don’t compare yourself to friends or family your age who are buying homes – this could leave you feeling pressured to buy when you’re not ready. A home is the largest expense most people will make in their lives, so it shouldn’t be taken lightly. Everyone’s situation is different – only you know if you’re ready to buy a home.

Ready to buy a home? Gulf Winds Credit Union offers a variety of mortgage options to choose from. But before buying, give our blog on home-buying tips a read!

Hunter Morrison

About Hunter Morrison

Hunter has freelanced for various print and radio publications across Northwest Florida, including The Bay Beacon, Navarre Press, Inweekly, Crestview News Bulletin, and WUWF. He was also the Editor in Chief of the University of West Florida’s student newspaper, The Voyager. In 2023, Hunter moved to Kenai, Alaska to take up a news reporting position with KDLL Public Radio. For fun, Hunter enjoys cross-country skiing, hiking, photography, thrifting, traveling, and looking for the best Thai food around.