Can You Buy a House at 20? Here's How One Michigan Homebuyer Made It Happen

What to Expect in This Post

• How one 20-year-old became a homeowner by purchasing a duplex
• What “house hacking” is and how it works
• Why buying a multifamily home can make homeownership more affordable
• The responsibilities and considerations of becoming a landlord
• Whether a duplex could be the right first home for you
• How Treadstone Funding + Neighborhood Loans can help you explore your option

Buying a Home Doesn’t Always Look the Way You’d Expect

Many people assume buying a home is something that happens after college, years into a career, or once they’ve built a large savings account. For some buyers, though, homeownership can happen much sooner with the right strategy.

That’s exactly what happened for Ian Starr, who purchased his first home at just 20 years old.

Rather than buying a traditional starter home, Ian chose a duplex — a decision that allowed rental income to help offset his monthly mortgage payment.

While every buyer’s financial situation is different, his story highlights an important lesson: there may be more than one path to homeownership.

Why a Duplex Made More Sense Than a Single-Family Home

When Ian first started thinking about buying a home, a duplex wasn’t part of the plan.

Once he looked at the numbers, though, it became clear that a multifamily property offered something a single-family home couldn’t: income potential.

By living in one portion of the property while renting the other unit and additional bedrooms, he dramatically reduced his monthly housing costs.

“At the end of the day, I realized by having that second unit, I could make double the money I could with the single unit.”

For buyers comfortable taking on the responsibilities of being a landlord, owner-occupied duplexes can be an effective way to make homeownership more affordable.

What is House Hacking?

Ian’s strategy is commonly known as house hacking.

House hacking means purchasing a home that produces rental income while you also live there. Depending on the property, that could include:

• Buying a duplex and renting the second unit.
• Purchasing a triplex or four-unit property while living in one unit.
• Renting out spare bedrooms in your home.
• Creating an accessory dwelling unit (ADU), where permitted.

The rental income may help offset your mortgage payment, making it easier to manage monthly housing costs while building equity.

Every situation is unique, and loan qualification requirements vary, but this approach has become increasingly popular with first-time buyers looking for creative ways to afford homeownership.

Hard Work Was Part of the Equation

Ian didn’t stumble into homeownership overnight.

He works in residential construction and also picks up shifts waiting tables to supplement his income.

“I was working hard, but not crazily hard. I’m not burning my life away.”

Combined with careful planning, those multiple income sources helped put him in a position to purchase his first home much earlier than he expected.

Of course, the right advice can make all the difference, too. One conversation changed Ian’s perspective.

His father walked him through the numbers and showed him that buying a duplex wasn’t just an idea, it was something he could realistically accomplish.

“He explained it all out to me, said the math works out. This is a very real thing that you could do today.”

That’s one reason it’s valuable to speak with a mortgage professional early in the process. Exploring different property types, loan programs, and financing options may reveal opportunities you hadn’t considered.

Is Buying a Duplex Right For You?

A duplex isn’t the right fit for everyone.

Before purchasing a multifamily property, it’s important to consider:

• Whether you’re comfortable being a landlord.
• The maintenance responsibilities that come with rental property.
• Local rental demand.
• Your long-term financial goals.

For the right buyer, though, purchasing a duplex can provide a unique opportunity to lower housing expenses while beginning to build long-term wealth.

What Do You Need to Buy a Home at 20?

Buying a home at 20 might sound out of reach, but age isn’t what lenders focus on. Instead, they look at your financial picture and whether you’re prepared for the responsibilities of homeownership.

While every borrower’s situation is different, here’s what you’ll typically need:

Homebuyer Checklist

• Stable, documented income
  Whether you work full-time, part-time, or have multiple jobs, lenders want to see consistent, verifiable income that demonstrates your ability to repay the loan.
• A manageable debt-to-income ratio
  Keeping monthly debt payments low compared to your income can improve your ability to qualify for a mortgage.
• Good credit history
  A stronger credit score may help you qualify for more loan options and competitive interest rates.
• Cash saved for upfront costs
  Depending on the loan program, you may need as little as 0% to 3% of the home’s purchase price for a down payment. You’ll also want to plan for closing costs and other expenses that come with buying a home.
• Steady employment
  Lenders typically look for a stable employment history, though recent graduates and those entering the workforce may have additional qualifying options.
• A realistic monthly budget
  Owning a home means planning for more than just the mortgage payment. Property taxes, homeowners insurance, utilities, maintenance, and unexpected repairs should all fit comfortably within your budget.

 

Why You Can Trust Neighborhood Loans + Treadstone Funding

For more than 20 years, Treadstone Funding + Neighborhood Loans has helped Michigan buyers explore financing options that fit their goals—not just the traditional path to homeownership.

Whether you’re purchasing a single-family home, considering a duplex, or looking for down payment assistance, our Loan Officers can help you understand your options and create a plan that works for your budget.

 

Frequently Asked Questions

Can a 20-year-old qualify for a mortgage?

When it comes to buying your first home, age isn’t the determining factor. Lenders evaluate factors such as income, credit history, debt, employment, and the overall loan application.

Can I use rental income to help me buy a duplex?

Depending on the loan program and your individual circumstances, future rental income from an owner-occupied multifamily property may be considered. A Loan Officer can explain what may apply to your situation.

What is house hacking?

House hacking is purchasing a property that allows you to live in one portion while generating rental income from another part of the home, such as a duplex or rented bedrooms.

Can first-time homebuyers buy a duplex?

Many first-time buyers purchase duplexes, triplexes, or four-unit properties as long as they meet the loan requirements and occupy one of the units as their primary residence.

Is buying a duplex a good investment?

It depends on your goals, finances, and willingness to manage a rental property. For some buyers, rental income can help offset housing costs while allowing them to build equity over time.