What Age Can You Buy A House? A Legal And Practical Look At The Question

In the United States, it is legal to buy a house at the age of majority, which is 18 years old in most states. Reaching the age of majority empowers individuals to sign legal agreements and complete real estate transactions. Before reaching the age of majority, individuals can legally own property by being placed on the title.

The practical aspects of buying a house young are often the more limiting factors, which is why it’s important to learn the signs of being ready to buy a house, as well as the pros and cons of owning a home.

States Where You Cannot Buy A House At 18

The majority age to buy a house is 18 in most states. However, there are three exceptions:

• Alabama: Majority age is 19.
• Nebraska: Majority age is 19.
• Mississippi: Majority is 21.

In all states, however, you can still own a home before the age of majority if someone puts you on the title.

Signs You Are Ready To Buy A House

What age you can legally buy a house is fundamentally less important than the other signs you’re ready to buy. Here are a few things you should have that show you’re ready to buy a home:

• A solid debt-to-income ratio (DTI): Your DTI is an important calculation mortgage lenders use to measure your loan eligibility. If you have student loans or credit card debts that outweigh your earnings, you may not be able to secure a mortgage. A good DTI is usually 35% or less.
• Income stability: A stable income is necessary to make monthly payments and pay for costs like homeowners insurance, property taxes and maintenance.
• Intent to stay in the area: It’s best to buy a home when you know you’ll be in the same place for at least a few years.
• Down payment savings: Conventional loans require a minimum of a 3% down payment and FHA loans require a minimum of 3.5%. To avoid paying private mortgage insurance (PMI), borrowers need a down payment of 20%.
• Access to extra funds: Besides saving for a down payment, you’ll also need enough cash to cover the closing costs and other home purchase fees.
• A high enough credit score: To qualify for a mortgage and an affordable interest rate, you need a good credit score and history showcasing how well you repay.

Pros And Cons Of Buying A House Young

Before committing to purchasing a home at a young age, there are several advantages and disadvantages you should consider.

Pros

• Build equity: As you pay off your loan, you can build equity. A home can be a solid investment, and if it grows in value, that investment can be used as leverage for buying a new home, consolidating other debt with a refinance or paying for major life expenses.
• Life stability: Having a place you can call your own can have a huge psychological impact. Investing in a home can ground you and help you put down roots.
• Programs for first-time home buyers: Many local areas offer grants and assistance programs for first-time home buyers.
• Building credit: Paying a mortgage regularly is one of the most effective ways to build your credit.

Cons

• Geographic limitations: Purchasing a home can make it more difficult to relocate for work if you get an opportunity in another state. The beginning of your career may set the foundation for your earning potential, so being locked into a home could cost you opportunities.
• Too much budget strain:  Owning a house can be expensive. If you’re strapped for cash and can’t afford monthly mortgage payments, you could consider roommates, tenancy in common or joint tenancy. However, these come with their own complications.
• Extra responsibility: Owning a house comes with a lot of responsibility in terms of maintenance compared to renting. While renters rarely have to worry about lawn care or plumbing issues, these can become your responsibility if you’re a homeowner.

At What Age Should You Buy A House?

In 2024, Gen Z (people currently aged 12 – 27) accounted for just 3% of the homes purchased according to the National Association of REALTORS^®. The median age of Gen Z home buyers was 21. The vast majority of home buyers in the U.S. are significantly older.

Gen X (people currently aged 44 – 59) accounted for 24% of home purchases with a median age of 51. Older millennials (people currently aged 28 – 43) accounted for 21% with a median age of 38, and younger millennials accounted for 17% with a median age of 30.

As the ages go up, homeownership rates climb. Whether people your age own homes shouldn’t be what determines if you purchase one yourself. If you’re in the position financially to buy a home at a young age, you need to think about what that means for you. It may make other financial choices less feasible, like traveling or investing or schooling.

On the other hand, mortgages can be cheaper than rent, depending on the real estate market where you live. If you’re ready for the commitment, owning a home when young can be a huge asset. Bucking the trend could put you in a great place to establish your home and build equity, which could be a powerful investment.

The Bottom Line: Buying A Home Young Can Be Advantageous

No matter your age, you should only judge whether you’re ready to begin the home buying process by your specific financial situation and the current housing market. While the minimum legal age is typically 18, other factors often determine whether you’re ready. You need secure finances, stable income and the assurance that you’ll be staying in the area where you’re considering buying the home.

Feeling ready to start your home buying journey? Get started on your mortgage application today.