Venturing into the housing market eager to buy your first home can feel uncertain. How old does someone need to be to buy a house? Unfortunately, there are age restrictions in the United States when it comes to home buying. Legitimate cash house buyers that run huge real estate investing operations typically aren’t run by 5-year-olds. The rules and norms around the age factor in home buying can often be a little confusing.
Let’s dive into the details and clarify the age requirements to purchase a home based on how old you need to be.
What Age Can You Legally Buy a House?
Eighteen is the magic number in the United States, the legal age to enter into contracts, including those for real estate. In most circumstances, you must be 18 years old to legally buy a house. Before you turn 18, the law considers you a minor and unable to sign binding agreements without a legal guardian.
However, even if you are 18 years old and have the legal capacity to buy a house doesn’t mean you are ready to. Homeownership is a significant financial commitment. Purchasing a property demands a massive number of responsibilities, such as:
- Mortgage payments
- Property taxes
- Insurance premiums
- Utility bills
- Maintaining and improving the property
Although an 18-year-old teen can legally buy a house without a guardian or co-signer, it’s not something that a teenager should rush into unless they’re very prepared.
Can You Buy a House at 16 Years Old?
In the United States, a 16-year-old cannot legally purchase a house. At this age, you’re still classified as a minor. Even at 17 years old, you are considered a minor and are unable to enter into a legal agreement, such as a contract for a house.
Buy a House at 16 Years Old
However, there is a slight workaround. Should a minor inherit or receive a house as a gift, they could technically become homeowners. Still, the minor wouldn’t be able to make major decisions like selling or mortgaging the property without the consent of a guardian, even though the property title carries their name.
Consider this an abridged version of buying a home. The 16-year-old wouldn’t have full reign over the home they now own, but they still own it! Overall, you probably should not buy a house if you are only 16 or 17 years old.
What Age Can You Buy a House with a Co-Signer?
Are you wondering how old you need to be to buy a house with a co-signer? You’re in luck! There is no official minimum age limit to buy a house with a co-signer. The co-signer, typically a parent or legal guardian, assumes the loan responsibility if the primary borrower is unable to make the payments.
This arrangement is frequently used when younger individuals, who might not have a strong credit or income history, aspire to buy a house. Despite having a co-signer, the primary borrower must be at least 18 to legally bind themselves to the contract. The co-signer essentially serves as a safety net for the lender, assuring them the loan will be repaid.
What Age Can You Buy a Home in California?
The golden state of California, much like the rest of the country, requires you to be 18 to legally purchase a house. If you’re underage and have set your sights on a Californian property, remember that lenders consider other factors aside from age. They’ll look at your credit score, the stability and duration of your employment, and your debt-to-income ratio.
The average age of a homebuyer in California is 36 years old. Although it’s legally feasible at 18 years of age, most people take a bit more time to make their first property purchase. Once you reach an age where you can afford to buy a home in CA, you will be adding a great asset to your net worth. Homeowners make huge profits when they sell a California home that they’ve held for years. Wait for the right age before committing to buying a home in CA.
Can Emancipated Minors Buy a Home?
Interestingly, emancipated minors, particularly in states like California, can legally buy a house. Emancipation grants those under 18 the legal authority to make decisions, including signing contracts. In California, the minimum age for emancipation is 14.
A 14-year-old could technically buy a house in the United States under the right circumstances. Crazy, right? However, this situation requires more than just the legal status of emancipation. The minor must also have the financial means to handle the costs associated with homeownership, which is often a tall order for someone so young.
Required Age to Buy a House
The journey to homeownership is influenced not just by your age but also by your financial maturity. If you’re eager to step into the realm of homeowners, the first and most important step is to build a solid financial base. Once you purchase a home, you want to keep it! If you stop paying your bills, your home could be foreclosed, and you would lose it. Wait for the right age to buy a house even if you are technically old enough to purchase one.