[Helga Vannett]

Hey everyone, forgive me but I hope my question here is valid.

I’m a student and I’m really itching to get my own place. I’d love to hear from you guys about how you started your journey to owning your first property and managing all the requirements that come with it. I’ve done my research but aside from I need to build my credit up, I can only afford maybe 5% of the down payment requirement. Any tips or advice you can share would be awesome!

[Lynette MItchell]

Let’s say you really want to use a First Lien HELOC for a home, but you’re short on the usual 10% down payment. Here are some things you may want to consider:

Look for Help: See if there are any programs that can chip in with your down payment. Some places offer help to make buying a home easier.

Save Up: Start squirreling away as much cash as you can. Try cutting back on spending or picking up odd jobs to boost your down payment savings.

Explore Different Loans: Check out special loans like FHA or VA loans that don’t need as much down payment money. They might be easier to get if you’re short on cash.

Talk to an Expert: Don’t be shy about chatting with a financial advisor or someone who knows the ropes of home buying. They can give you the lowdown and help you figure out the best way forward.

Buying a home can feel like a big puzzle, but there are always ways to make it work – even if you don’t have all the cash up front. Just take it one step at a time, and you’ll get there!

[Dakota Harris]

Oh @Helga your question is actually a good one and I’m sure a lot of young people are also curious about.

In addition to what @lynnemitch said;

First off, getting a student credit card can be a game-changer. It’s like dipping your toes into the credit pool. Just remember to use it for small purchases, like textbooks or groceries, and pay off the balance in full each month. That way, you’re building credit without getting in over your head.

Next, paying your bills on time is super important. Whether it’s your phone bill or rent, staying on top of payments shows lenders that you’re responsible. Imagine your credit score like a report card – the better your grades (or payment history), the higher your score.

Now, let’s talk about credit card balances. Think of your credit limit as a pizza – you don’t want to scarf down the whole thing in one sitting! Keep your credit card balances low compared to your limit. For example, if your limit is $500, try not to use more than $150 at a time.

You’re entitled to a free report each year from each of the major credit bureaus.

Lastly, let’s talk about stability. Lenders like to see that you’re not hopping around all the time. So, having a stable address, like your dorm or apartment, can help boost your creditworthiness. Plus, building a relationship with your bank or credit union can open doors to future credit opportunities.

So, there you have it – some simple tips to get your credit journey started as a student. Just take it one step at a time, and before you know it, you’ll be rocking that stellar credit score!

[Daniel Lao]

Hello everyone! This maybe a bit out of the topic but I;d like to ask if I can I use a HELOC to supplement a down payment on a new house as a first time home buyer?

[Jeff Clifford]

@Daniel – Yep, you can totally use a HELOC to beef up your down payment when you’re buying your first home. HELOCs are like this flexible loan thingy where you can borrow money against the value of your home. Usually, you can snag up to 80% of what your home’s worth, but some places might even go up to 90%.

So, using a HELOC for your down payment can be handy ’cause it means you don’t need as much cash upfront to dive into homeownership.