Younger Americans who bought their own house in a high cost of living area, how were you able to afford it? Was it possible without an expensive mortgage?

12 comments

1. My mortgate is cheaper than the rent of paid in most places. I’m 29.

   Right now my the house I’m in is 168K. Monthly payments are $500~~

   This house is 2 stories, cleared for commercial use, has 5 bedrooms. I lived in a single story 2 bedroom house for $650 a month renting.

   It’s not as expensive to purchase with a loan as you would think. Just be smart about where you choose to live. You can find better houses than what I live in for much cheaper in other states. It’s not hard.

2. A 0 down VA loan helps. So does getting a very comfortable salary. Definitely not possible without an expensive mortgage, but doesn’t mean it can’t or shouldn’t be done.

3. There were many first time home buyers programs that allowed no money down (or 3-5%) and had closing cost assistance. These were prevalent from probably 2012 up until the pandemic and allowed me to get my first house.

4. Inheritance after my grandpa passed away. I’d trade my home to have him back in a heartbeat.

5. As a twenty something- pretty much none of my friends own their own home. Honestly, to speak candidly, none of us even care to. Gen Z Americans just want to move around and care more about experience imo.

   That being said, in my city you can still get a 2-3 bedroom house in a neighborhood that’s decent for around 200k. Often times the mortgage will be cheaper than the average rent in the area. The issue for many working to lower class Americans is saving up the money to be able to afford the down payment.

   Edit: first time homeowners loans are also a major benefit. Small down payment around 4%, slightly higher monthly payments. But usually still comparable to an apartment’s rent.

6. I don’t have a house, but am younger with a couple friends my age that own houses. The answer for all my friends is high income, dual income, or in most cases both. And probably half of them had significant familial help also.

7. High paying tech jobs

8. Bought a house in San Diego at 31.

   Being married with no kids and 2 incomes is really the fastest way. We put down about 15% and our monthly payments are comparable (or maybe even lower) than what rent would be on a comparable space.

   We also bought a new-build at the very first release, which helped A LOT! Our home was ~600k, and the same floor plan was going for 800k toward the last releases.

9. Not in a high cost of living area, but I was able to buy a home early thanks to the 2008 housing crash. Foreclosed homes everywhere.

10. I bought my house with some inheritance. I had a mortgage for a short time, but decided to pay it off- the mortgage was a bit too much even with a high down payment because it could technically only be considered an investment property.

11. I own two houses in the SF Bay area, which was made possible by (1) my tech salary and (2) my grandmother leaving me 100k when she passed, which became my down payment.

12. VA loan