I’m twenty years old. Can I get a mortgage?

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I’m twenty and currently in my third year of college. I want to get a cheap little 30k condo by my university and start investing rent money into something I can get something back from. I have atleast 12 months rent (3k) in savings in the bank and am prepared to put a 20% down payment down on the condo (6k). In addition, I have been establishing my credit the past two years, have an excellent credit score, an IRA I regularly deposit money into, and stocks and bonds in my financial portfolio. I only make about $ 1000 a month but a mortgage payment on a 30k condo should only be between $ 200-$ 250 a month. My car is paid off so I have no payments on that and I don’t have any student loans. In addition, I’ve worked the same job for the past two years and have been consistent in the same field or work. My friends and family keep telling me I can’t get a loan this young but I wanted second opinions, so please: is there any possibility for me to get a 30k mortgage loan at such a young age?

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4 Comments
  1. Reply
    ablex
    May 19, 2011 at 3:58 am

    Absolutely.
    Go to your credit union or bank where you have your accounts and IRA. If they won’t give you a mortgage, I’m sure there are some mortgage companies out there that will but be wary of lenders you don’t know.

  2. Reply
    Non-Redneck
    May 19, 2011 at 4:03 am

    As long as you have money in the bank and other assests (stocks, IRA) that you can show the bank you have, I think that you will be OK. The bank may require a little more down payment (30% or so).

    If you’re serious about applying for a loan, make sure you have no credit card debt and don’t apply for any credit cards or loans for a year before applying for loan to increase your chances.

    One flaw I can see is that your credit history may not be long enough. Try to get pre-approved first.

  3. Reply
    Larry E
    May 19, 2011 at 4:27 am

    I don’t think your age would be a factor but when you finish school you will probably move away. I bet they would take that into consideration and not loan you the money. All you can do is talk to a mortgage company. I must commend you for your financial responsibility. You will do well in life.

  4. Reply
    Dizzy_Lizzy
    May 19, 2011 at 4:41 am

    As long as you have an adequate credit score, you should be fine.

    Just keep in mind that you should plan to own this home for a minimum of five years to minimize the risk of selling at a loss. If you think you’ll be leaving the area in a year or two, renting is probably a better financial choice.

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