Regardless of age, if you qualify as a first-time homebuyer, specific programs may be available to help you. First-time homebuyer programs, which are typically controlled at the state and local levels, provide down-payment and closing-cost assistance to first-time homebuyers. These programs are valuable resources to those who may otherwise not be able to purchase a home.
The Average First-Time Homebuyer
In 2021, the average age of a first-time homebuyer was 33 years old. The average age of a first-time homebuyer has remained fairly steady over the years, while the average age of repeat homebuyers continues to rise. In 2021, the median age for repeat homebuyers reached an all-time high of 56 years old. Married couples account for 60% of first-time homebuyers, while unmarried couples account for 9%. In addition, 19% of first-time homebuyers are single females, and 9% are single men. Out of all the individuals buying a house, 28% did so because they desired to own a home of their own. This number increases when you look at first-time homebuyers—65% of whom cite wanting a home of their own as their driving goal.
How Average First-Time Homebuyer Ages Have Changed
The average age of first-time homebuyers has increased over the years. In 1981, the median age of first-time homebuyers was 29, but by 2021, the median age had increased to 33. Interesting to note is that the percentage of married couples buying a home has decreased over the years, while the number of single females buying a house has increased. In 1981, 73% of first-time homebuyers were married couples, compared to 60% in 2021. And in 1981, 11% of first-time homebuyers were single females, compared to 19% in 2021.
How Old Do You Need to Be to Buy a House?
Any age restrictions around a home purchase are largely decided by the lender, although state laws play a role in that as well. Most programs require borrowers to be at least 18 years old. Minors can’t buy or sell property, but it is possible to transfer property to a minor through a guardianship or trust. In most cases, the minor would have beneficial ownership of the property with a custodian acting as a trustee.
Does Age Matter When You Buy a Home?
As long as you’re legally an adult, it doesn’t matter how old you are when you buy a home. The real issue is whether or not you’re financially prepared to buy a home, the odds of which increase with age. For instance, the average credit score of first-time homebuyers is 716. But this type of credit score can be hard to achieve when you’re young. The average credit score of those in their twenties is 662, but it’s a number that can often take some time to increase. The average credit score for a 23-year-old is 630. Depending on the program you apply for, you may also need to meet certain credit requirements. For instance, you’ll need a credit score of at least 580 to receive maximum financing from an FHA loan. For instance, VA loans don’t have a minimum credit score requirement. U.S. Department of Agriculture (USDA) loans require at least a 640, although they may offer manual underwriting. With Fannie Mae or Freddie Mac loans, the minimum score required is 620.
