How to get finance for your first rental at 18 years old

8 Replies

So I am approaching my 18th birthday and once I graduate I plan on using an FHA loan and putting 3.5% down on a house hack. Here's the issue... I'll be 18, realistically the bank will need some credit history and reported income. So how can I get financing for my first deal? Yes i could partner with someone or even try to build my credit early? I'd love to hear what you guys think on how to finance a deal as an 18 year old.

Start building your credit ASAP. A local bank will help you open a credit card and start building your credit as soon as you turn 18, maybe sooner. In addition to credit, they will want to see income, so focus on getting a stable income going. The primary thing lenders are looking for is "proof of ability to repay". 

@Joe Mack

You will need a two year job history, and credit. The credit thing is easy. Google that on the internet. Main thing is to keep your balances low, you don’t want to use more than 40% of the limit and pay on time every month. If you are having an issue getting a card, find sometime that will let you be an authorized user on their card. This puts that card history automatically on your credit report. Make sure it’s a good history!

Originally posted by @Joe Mack :

@David Kelly thank you for the advice! What should I do if I want to move into a house hack anywhere in the US and I have to quit my job in my hometown? Would the two years carry over?

Joe, You can move to anywhere you want but you will need to have a job lined up for the approval.  Unless you are able to transfer and keep the same job.  With the new job you will need to get an "award letter" stating your employment start date and details about your pay.  The loan will be qualified based on what that letter from your new employer says.


@Joe Mack . If you don't already have a credit card, get one and start using it for all of your expenses. Pay it off every month and you can actually build really good credit, even if you don't spend that much every month. I got a CC at 18 and used it for all of my basic expenses and it allowed me to qualify for a great interest rate when I bought my first property at age 21. Hopefully you can do it sooner! Good luck.