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First time homebuyer (young homebuyer) question for the experts

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txbradybunch
Valued Member

First time homebuyer (young homebuyer) question for the experts

My son is 18 years old and about to graduate from high school.  We are moving out of state after his graduation and he will be moving with us.  He has several job offers in our new state and has tentatively accepted one that offers some really great opportunities for the future.  He will turn 19 this summer.  He has been employed in his current part time high school job (fast food) for over a year.... will be about a year and 4-5 months when we leave.  He is planning to save money by living with us after the move, in hopes of purchasing a house within a year. 

 

At the time of purchase his stats will/should be:

19.5+ years old

2+ years job history (over 1 yr at one job and about 6-9 months or so on the newest)

no debt, but also no credit history

minimum of 5% down payment (more likely 10%+)

 

He will be looking to purchase a very conservative starter home (under $100k) for which the payment would be about 50% of what local rents seem to be running. 

 

I've read that AU credit accounts are not even considered - so there doesn't seem to be much purpose to adding him to any of our accounts to build credit history.  Should he apply for a credit card?  Should he apply for a small loan?  Or can he obtain credit as a first time buyer without a credit history?

 

Thanks in advance

Message 1 of 3
2 REPLIES 2
prince1969
New Contributor

Re: First time homebuyer (young homebuyer) question for the experts

He can get a secured card and make payments for 6 months. Keep a small balance on the card, less than 10% of credit limit. Then after a 6 months to a year, he can apply for an unsecured card. Then he would ready for the mortgage.

4/13 Equifax 679 (Scorewatch), TU 695 (myfico), 703 (Walmart)

6/14 Experian 733 (myfico), Equifax 687 (Scorewatch), TU 693 (Walmart)
Message 2 of 3
txbradybunch
Valued Member

Re: First time homebuyer (young homebuyer) question for the experts

Thanks!  That is what I was thinking!

Message 3 of 3
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