Quickest way to start house hacking with little to no credit

[Jorrin Crow]

I’m 19 I’ve been wanting to house hack for awhile now so I started building my credit as soon as I could I make a little north of 25k annually at the job I have now. I’m currently pursuing a higher income job however I’m wanting to start this adventure sooner than later. I’m in the Houston area so there’s a huge market Problem is, how can a 19 year old with little credit buy a property a bank would never in a million years approve that loan so any and all advise is welcomed I really think this my passion and I intend to pursue it with excellence this app has massively increased my knowledge and drive in pursuing this thanks to everyone out there and I’m stoked to hear yalls feedback

[Jennifer T.]

The nice thing about a house-hack is banks are, for the most part, going to treat you like a normal homebuyer. And they loan money to first time homebuyers all the time. Keep in mind, you'll need a 3% down payment for an FHA loan (property needs to be in great condition for that kind) or a 5% DP for a conventional loan. Plus closing costs, some of which could be rolled into your offer to have the seller pay for. A seller will typically view that as a deduction from the overall purchase price, so keep that in mind with your offer if you request closing costs.

I believe the credit bureaus start people with a good credit score, though a bank will also be looking to see a credit history.  Do you have a credit card? If not, look for a "starter" one...a student one if you are in college...and get one.  Make one charge a month and pay it off.  You won't pay anything in interest with that strategy, but you'll be building your credit.  If you've ever had any kind of installment loan, ie car loan, that will look great also.

If you are currently renting, there are websites out there that will count your on-time rent to positive info on your credit report.  Do a Google search to check it out.  Though there is usually a small monthly fee (less than $10).

However, if you get/have credit cards or loans, be careful with the amount of the monthly payment. Banks will also look at your DTI (Debt to Income) and you aren't going to have too much room with a $25K annual salary. Good luck! You'll definitely reach your goal if you keep working at it. You might just have to be patient.