Is it possible to qualify for an FHA loan while only being 18-19? Requirements?

Question

In less than a year I'll be leaving for college and will be attending a school in Virginia Beach, VA. While I'm down there, during my first few years, I plan on house hacking at some point to begin my investing journey in college. If I were to find a property, would I be able to get a FHA loan for someone at such a young age (would be 18-19 when I apply), or would I be restricted due to debt to income or some other factor?

Ryan Thomson · Answer

@Ethan Schultz

I wish I was thinking like you in College! Here is an interesting idea. Use your knowledge and drive to convince your parents (or other co-signer) to get a home near your college. Co-sign with them and put some money down with them if you can.

Buy it as YOUR primary residence with your parents as the co-signers. This would allow you and your parents to only have to put 3.5-5% down. Then you rent out the rooms to your college friends. This will probably allow you to live for free and your parents to avoid a dorm or expensive home payment while you are in college. Not to mention you can both cash in on appreciation and loan paydown.

If you really wanted to scale, you could do this each year. Rent out the last house to a new group and move with your friends to the next house. This is a great way to scale and you only have to put 5% down if its your primary residence each time.

You obviously need to convince your parents or (someone who would co-sign and help with the downpayment) about how good of an idea this is. But if they are savvy money people and they trust you (which I bet the do), then this seems very doable. Maybe give them part of the equity or a monthly fee until you refinance and get their co-signing off the loan.

Brittany Minocchi · Answer

Hey Ethan!

Age is irrelevant here as long at you're 18 and legally able to take on the debt. Some things to consider....have you been working? If so, for how long? Are you 1099 or W2? Can you show 2 years of employment history (not necessarily at the same employer)? Will your income support the mortgage payment for a property in the area you're looking in? Have you established any credit? Do you have funds for a down payment and closing costs? Do you have anyone who will co-sign for you as a non-occupying co-borrower? These are all things a lender will consider.

Hopefully that helps! Feel free to connect.

Alejandro B Yoon · Answer

I bought my house at 21 a few months ago without any relevant tax returns. You can qualify for a FHA and conventional loan with a college diploma and an offer letter, as long as your job is related to your major.

These loan products are typically used for lawyers and doctors who have little work experience but solid starting salaries. I am in Accounting and was able to shimmy myself into a property.

This was the fastest route I saw reasonably possible and I spoke with a lot of lenders when I was a freshman in college. Only other options is to either have private money or already have solid tax returns.

Patti Robertson · Answer

If you don't have 2 years of income history, and your parents are willing, you can buy it with them until you are in a position to refinance them off.

Adrian Lammersdorf-Scioll · Answer

When I bought my last house hack a few months ago my lender told me you only need 1 year of income now with fha, and they also changed it to I believe 48% of income should cover monthly payments (up from maybe 42% or so).  If you don't think you will qualify than do like Jay said and get a co-borrower to help you out.  I heard Virginia beach is a really good area, I got a friend thats looking for an airbnb out there.   Talk to a lender that understands house hacking/investment side of real estate, they'll be able to update you with current guidelines.  I would worry more about income than age if you are above the age of 18.

Jay Hurst · Answer

@Ethan Schultz   You would have to have enough income to qualify like any other owner occupied loan. However, you can have what is called a non-occupant co-borrower like a parent to help with the debt to income ratio.

Andrew Postell · Answer

@Ethan Schultz I purchased my first house hack while in college.  Now, I worked while in college and my first home was $50,000...so, that may not be for everyone....but it is possible. If you talk with a loan office that's local to you they should be able to tell you what you would need to qualify free of charge.

Angela Rose Remma · Answer

FHA loans will want to see two years of income as well as credit in good standing which can be difficult to have at a young age.  FHA loans also have requirements for property condition and will most likely only offer loans for a property you live in.

Jerry Padilla · Answer

@Ethan Schultz

It is possible to get an FHA or conventional using a non-occupying coborrower.  The only restriction is that the property can only be a single-family dwelling.  Do keep in mind the non-occupying would have enough income to cover their debts and the new mortgage payment.

If you have established credit scores and no monthly debt obligations, then you could possibly find a multi-family that would cover the mortgage payment to meet the debt-to-income ratios.  This scenario can be challenging to find, for example, a 4-unit property.  The other three units' income must be high enough to cover the mortgage payment.  So, if the mortgage payment is $2000 a month, the gross income from the other three units would have generated $6275 a month.  The lender will only give credit for 75% of the gross income, putting the total income at $ 4,706.25 monthly.

Feel free to reach out if you have any additional questions

The other alternative is going with a DSR program, but this will require a 20-25% down payment.

Benjamin Sulka · Answer

Age shouldn't matter here as long as you're over 18. It's great that you're getting involved and seeing how you can make it work at your age!

The bigger implication, like others mentioned, is your income history.

FHA typically requires two years of W2 income in order to qualify. Look into getting a co-borrower like the others mentioned.

Best of luck!

Is it possible to qualify for an FHA loan while only being 18-19? Requirements?

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