Blog

Buying a home as Millennial at 24. Defying the Stereotype.

 
You turn on the news. The message out there is that it’s not possible to buy a home. More news stories report that Millennials are going to make less than their parents. According to a Forbes article Millennials are making 20% less than their Baby Boomer generation parents.

Another Forbes article cites a Pew Research Center report that says Millennials live with their parents longer than both Baby Boomers and Generation X did.
“For example, as of 2016, 15% of 25- to 35-year-old Millennials were living in their parents’ home. This is 5 percentage points higher than the number of Gen Xers who lived in their parents’ home in 2000 when they were the same age.”

Despite what the news says, defy it. I purchased my first home at 24 and so can you.

Here are some steps that you can take to make it possible.

  • FHA loans:  Consider saving money for a down payment. With an FHA loan you can put down as little as 3.5% of the purchase price, instead of the standard 20%.

  • Income property: Consider buying a property that has a rental such as an ADU or a duplex. The rent you collect might allow you to qualify for more financing and make your mortgage more doable.

  • CalHafa:  Don’t have a down payment? No Problem! CalHafa loans offer down payment assistance.

  • Mom/Dad: If your parents are looking for an investment, convince them or another family member to provide down payment assistance, or co-purchase with you. If they don’t have savings they can also consider borrowing on their existing home via an equity loan.

  • Co-purchase with a friend: This can be especially helpful when you buy a duplex.

  • Can’t afford Los Angeles? Consider buying a second home first, even if you rent your first home you still can buy a vacation home. Some great options are areas like Palm Springs, Joshua Tree or Big Bear.

  • VA loan: This loan helps Service members, Veterans, and eligible surviving spouses become homeowners with no down-payment or mortgage insurance.

 
How did I buy a home at 24?

  • Side gigs: I took side gigs to save money. Working a day job while going to school and made extra money selling things I found at thrift shops on eBay.

  • Family a/k/a Roommates: My mom and brother were renting so to help out, rather than me moving in with them, I had them move in and pay rent to offset the mortgage

  • Savings: I got a cookie jar and rewarded myself when I cleaned the house or dyed my own hair. Every week I did something to save money and I would put the savings in the cookie jar. That extra money really helped towards the maintenance of the house.

The largest challenge I had was having Real Estate agents take me seriously. At 24, real estate agents would not help me, thinking I was a waste of time. I think that’s one of the reasons I decided go into Real Estate. I also had 3 dogs and 3 cats and honestly, no one wanted to rent to me.
Whatever you do, don’t waste money on rent. Even if all you can afford is the smallest studio condo in K-town (like my brother purchased), just own something.  
 


Work With Us

Our in-house marketing and technology teams get your home the most exposure in the most extraordinary way, so we can get you top dollar for your home, in the shortest amount of time.
Contact Us
Follow Us

Thanks For Reaching Out!