Is it possible to purchase a property at 19 with a small income history?

[Dasha Taylor]

Hi everyone! I'm 17 and I will turn 18 next April. My goal is to buy my first property when I'm 19 that I'm going to house hack. 

I have $14k saved up right now and I have my own business, from which I earn about $1-2k per month. 

I also started working at a part-time job recently to start building an income history, get a W-2 form and receive paycheck stubs, which are necessary things to have to get approved for a mortgage. I know that I need to have at least two years of income history to be qualified for a loan, so that's why I decided to do it now. 

My question is, do y'all think I'll be able to get a loan and buy my first property when I'm 19? And will the lenders take into the consideration the money that I'm earning now and from my business?

I'm planning to put 15%-20% as a down payment, so maybe that can be as a "compensating factor" to the lender, if I won't have enough income history at 19.

Thank you so much!!

[Dasha Taylor]

Quote from @Wale Lawal:

@Dasha Taylor

Your forward thinking and consideration of real estate investing at such a young age is commendable! When you reach the age of 19, it's important to have a reliable source of income, be able to provide a down payment of around 15% to 20%, and maintain a good credit score and debt-to-income ratio in order to be eligible for a mortgage loan. Most lenders will want to see at least 2 years of steady income, and income from part-time work or your own business can help to strengthen your financial background. It's also helpful to have pay stubs and a W-2 form on hand to bolster your mortgage application. A larger down payment can lower the risk for lenders and make up for any limitations in your income. Don't forget to save up for closing costs, property taxes, insurance, and any potential repairs that may be needed.

Start by connecting with nearby lenders or mortgage brokers to evaluate your financial preparedness and investigate loan possibilities. Seek advice from a financial expert or real estate specialist to enhance your comprehension of the real estate industry and funding alternatives. Prior to your nineteenth birthday, make sure to carefully plan and conduct research on potential properties, market developments, as well as the legal and financial aspects related to real estate deals. Take the time to explore various house hacking techniques and select the one that best fits your objectives and available resources.

Good luck!

 Hi Wale, 

Thank you so much for your advice! I will start researching and talking to some lenders to see what their requirements are!