Can I Buy a House at 17? Your Options & the Law

Buying a home in the United States involves legal and financial considerations. For most, this journey begins at adulthood, when they can enter into legally binding agreements. Understanding age requirements and practical aspects of property acquisition is fundamental for aspiring homeowners.

Legal Age for Property Contracts

In the United States, the legal age for entering into contracts, including those for real estate and mortgages, is 18 years old. This is the “age of majority” in most states. Reaching this age grants individuals the legal capacity to sign binding agreements and participate in real estate transactions. Some states set the age of majority at 19 or 21.

Contracts entered into by individuals under the age of majority are considered “voidable.” This means a minor can cancel or “disaffirm” a contract before reaching the age of majority, or within a reasonable time thereafter. This protects minors from disadvantageous agreements, but makes sellers and lenders hesitant to engage in direct transactions with someone under 18. Lenders are unwilling to issue mortgages to minors because the contract would be voidable at the minor’s discretion, presenting a significant risk.

Alternative Pathways to Property Ownership

While a 17-year-old cannot directly purchase a house or obtain a mortgage, there are established legal and practical methods through which a minor can acquire an interest in real property. These pathways involve adult involvement to navigate the legal capacity requirements. Property can be held for a minor until they reach the age of majority.

One common method is co-ownership with an adult, such as a parent or legal guardian. The adult can hold title jointly with the minor, thereby entering into the necessary contracts on behalf of the ownership. This arrangement allows the minor to have an ownership interest while the adult manages the property and its associated legal obligations. If the property needs to be sold or mortgaged before the minor reaches legal age, a court-appointed guardian may be required to act on the minor’s behalf, even if a parent is involved.

Property can also be purchased through a trust. A trust is a legal arrangement where an adult trustee holds and manages the property for the benefit of the minor, who is the beneficiary. The trust document outlines when the assets will be released to the minor, often at a specified age beyond 18, such as 21 or 25. This mechanism protects the assets and allows for controlled distribution, bypassing the need for court involvement in day-to-day management.

Property can also be acquired by a minor through gifts or inheritance. If a property is gifted to a minor, or if they inherit it, an adult manages these assets until the minor comes of age. For inherited assets, a court may appoint a guardian to manage the property, or a custodian under the Uniform Transfers to Minors Act (UTMA). Gifts of real estate may have tax implications for the gifting party if the value exceeds annual exclusion limits, which was $19,000 per person in 2025.

Financial Readiness for Homeownership

Beyond legal age, financial preparedness is an important factor in homeownership, especially for young individuals. Lenders assess several financial indicators to determine eligibility for a mortgage. These requirements are universal, but can pose particular challenges for those under 18 or newly turned 18.

A consistent and verifiable income source is a primary requirement for mortgage qualification. Lenders require proof of stable employment history, usually at least two years of consistent income from the same employer or field. This demonstrates the borrower’s ability to make regular mortgage payments. Income documentation like recent pay stubs and W-2 statements for the past two years are standard requirements for loan applications.

Credit history and a favorable credit score are also important. Most conventional mortgages require a minimum credit score of 620. Individuals under 18 have limited or no credit history, making it difficult to meet these score requirements without a co-signer or establishing credit over time. Government-backed loans, such as FHA loans, may offer more lenient credit score requirements, sometimes as low as 500, but still require some credit history.

Prospective homeowners must also have sufficient savings for a down payment and closing costs. Down payments vary, with conventional loans sometimes requiring as little as 3% of the purchase price. A 20% down payment can help avoid private mortgage insurance. Closing costs, which cover various fees associated with the transaction, range from 2% to 5% of the loan amount.

Lenders also evaluate a borrower’s debt-to-income (DTI) ratio, which compares monthly debt payments to gross monthly income. While specific thresholds vary, a DTI ratio of 43% or less is preferred for mortgage approval, though some programs may allow higher ratios. This ratio helps lenders assess the borrower’s capacity to manage additional debt, such as a mortgage payment.