Between entry-level salaries, college loans, and the desire to be young and free, young adults sometimes think buying a house is out of reach. But that’s not always the case.

Read more to learn why you should buy a house in your 20s.

How to buy a house in your 20s

Most young adults are familiar with renting. But being a homeowner with a mortgage is completely different.

To purchase a house at your age, you must have cash saved up for a down payment on your mortgage. This down payment is typically 20% of the price of the home.

Although you don’t always have to put down 20%, you can avoid paying private mortgage insurance if you do. Which can increase your monthly payment by up to 1.15%.

Along with a down payment, becoming a homeowner will require you to pay the monthly mortgage, property tax, and homeowner’s insurance.

All in all, many responsibilities come with being a homeowner. And sometimes, unprecedented things can happen.

Set up a rainy-day fund for emergency home repairs to avoid more debt.

Student debt

Most graduates have student debt. But that doesn’t prevent you from becoming a homeowner.

Most mortgage lenders require a specific borrower’s debt-to-income ratio. This is how much money you owe divided by your income, which can be no more than 36%.

For example, someone making $6,000 a month and paying $500 a month in student debt would afford a maximum monthly mortgage payment of $1,680.

But if you’re holding onto too much student debt to qualify for a mortgage, you may still have options.

Check your credit score

A credit score is a numerical representation of how well you’ve paid off past loans and credit cards.

Mortgage lenders typically require a credit score of at least 660. They will also look at your credit utilization ratio. Which are your current debts, divided by the credit limit on the sum of your accounts.

Buyers in their 20s tend to have shorter credit histories. This can be a problem. If you have a limited credit history, the odds are that you have a mediocre credit score.

Before starting the home buying process, you’ll want to obtain a copy of your credit score. And if your credit score isn’t where it needs to be, you may need to take a few months to raise it.

Another option is to get someone with good credit, typically a parent, to co-sign the loan for you to become a homeowner.

Consider a starter home

As a first-time homebuyer, you don’t have to find your “forever home” right now. This is your first home, not your last.

So, search for more affordable homes. This way, your mortgage payment is lower, and you can prepare for any future home buying endeavors.

There are many benefits to buying a starter home in your 20s. Talk with a real estate agent about purchasing a starter home and how it can benefit you.