How to Buy a Home in Your Twenties

by | Jun 14, 2017 | Buyer Tips | 0 comments

Portland modern homes may cost a pretty penny these days with supply and demand so tilted. However, that doesn’t mean young adults looking to invest in real estate are automatically priced out of the market.

There are so many areas in and around Portland expanding to accommodate the population influx. They are offering stellar deals for owners willing to commute or take advantage of fixer-upper opportunities.

Still, if you want to buy, you have to be properly prepared for the process. Here are a few steps that will help you to reach your goal.

Build Credit

You don’t necessarily need top tier credit to buy a home. However, it will significantly impact the lenders willing to work with you. It will also affect the interest rates you’re offered on mortgage loans.

Maybe your credit isn’t great or is virtually nonexistent. In that case, create a plan to improve it. For example, you can pay down debt, clean up black marks, utilize credit appropriately, etc. Do it over the next couple of years before you start your search for Portland condos.

Reduce Debt

Your debt-to-income ratio is a major factor in determining loan approval and the amount you can get. Thus, this can be a problem for twenty-somethings carrying a load of student loans. You need to work hard to pay them down to avoid as much accrued interest as possible. Yet, also so you can get in the market for Portland lofts sooner.


You don’t necessarily need a 20% down payment these days to get a loan. There are plenty of options to borrow with less money down. That said, you need to meet this benchmark. Otherwise, you’re going to be on the hook for private mortgage insurance (PMI) until you pay up to 20% of your home’s value.


Most people aren’t going to get the dream home for their first home. For this reason, you need to prioritize and choose a starter home. Look for one that meets your must-haves. You want one that gives you the best opportunity to build equity and sell at a profit later on.


Once you’ve found the Portland neighborhoods you prefer, you need to bide your time a bit. The housing market goes through ups and downs. Therefore, wait it out and work with a real estate agent. In doing so, you have the best opportunity to get a great deal.

The only caveat, of course, is if the market coming out of a low (as it is now). In that case, you might want to buy a starter home soon. That way, you can cash in a few years down the road. You’ll be able to upgrade to your dream home with the profits.