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yes, it is possible to get 5% or less. If you know where to look, various cities and counties will offer low/moderate income programs. Sometimes they offer great terms (sometimes 100% financing) if you meet certain criteria. even if you can't find one, i think 3.5% down is pretty common for first time buyers.
You need an open line of credit to build a credit score, like a credit card. I was given bad advice, and had electric bills, water bills, rental leases, phones, etc. in my name for several years, and eventually came to find out that I had zero credit. As much as I hate credit cards, it is the easiest way I know of to build credit.
I guess the big question burning in my mind would be: would you have the income and long-term job security at 17 (or 20, or even maybe 25) that would allow to you take on a mortgage?
I really don't know much about credit scores. My main concern is do I need to spend a lot of money on a credit card? I have never really been into that, I don't like borrowing money for normal items, usually I pay cash or use my debit card. I guess I am saying does your credit score take into account how much you spend? Would it be okay if I pay it off right away so it is essentially a debit card. Paying the interest just seems like a waste of money.
I guess it sounds like this plan is unrealistic, thanks everyone for the help.
I really don't know much about credit scores. My main concern is do I need to spend a lot of money on a credit card? I have never really been into that, I don't like borrowing money for normal items, usually I pay cash or use my debit card. I guess I am saying does your credit score take into account how much you spend? Would it be okay if I pay it off right away so it is essentially a debit card. Paying the interest just seems like a waste of money.
I guess it sounds like this plan is unrealistic, thanks everyone for the help.
I don't think it's unrealistic, it should just be pushed back some years. You're light years ahead of your peers, I think, in terms of savings. Keep saving. Get a credit card. Build your credit score. With a good credit score and a large savings account for a big down payment and closing costs, you would be in excellent shape to buy a house.
I really don't know much about credit scores. My main concern is do I need to spend a lot of money on a credit card? I have never really been into that, I don't like borrowing money for normal items, usually I pay cash or use my debit card. I guess I am saying does your credit score take into account how much you spend? Would it be okay if I pay it off right away so it is essentially a debit card. Paying the interest just seems like a waste of money.
I guess it sounds like this plan is unrealistic, thanks everyone for the help.
To get a good credit score, use the credit card and pay it in full every month. That's what my husband and I do. Paying interest IS a waste of money.
Also, I am graduated from HS if that makes any difference. Darn, my parents for making me an October baby . I really think in the areas I'm looking the next year will be a great time to buy.
I would recommend having a consultation with a good, reputable mortgage lender now, even though you're at least a year away from being able to purchase a home.
There are several ways to build your credit score, and a good mortgage person can coach you on that. Generally, though, you should be able to obtain a credit card through your bank. You have the right idea to use it a few times, and pay the balance in full each month. The other thing you can do is have your parents add your name on to one of their credit cards (not just as a signer but as a cardholder, if their credit is good, and this can help you build credit quickly.
FHA requires 3% down, and they do not use credit scores to qualify an individual; however they will look at your employment history, payment history, and debt-to-income ratio. Since you have no debt, that should be good. Also, check into First Time Homebuyer programs in your area. Many of these offer downpayment assistance and/or low interest rates or low down payments. Many times these are done in tandem with an FHA loan.
As one poster mentioned, closing costs can be substantial, however many sellers these days are willing to pay most buyer closing costs. Plus buyer paid closing costs are usually limited with FHA loans.
I commend you on being so fiscally responsible. If you can continue to save first, buy later, you will avoid the mistake that so many have made of buying everthing on credit. Look at the mess most people and governments are in today because of buying now, paying later.
I"m also not sure if anyone else has mentioned this, but you will need 2 years of work history backing up your income. Any less than 2 years and you may not be eligible for a loan. There are ways around this like having a relative sign as a non-occupant co-borrower, but they will be equally responsible for the mortgage payments.
I too bought my first house when I was 18, but had to have my father "co-sign", I actually had years of credit history already (had a credit card in my name almost since my birth) but only had 1 year work history and couldn't prove the income required to qualify for the payment (server working on tips + roommates where counted on to afford everything easily).
Just make sure if your buying in the next year or two that you are SURE you are going to be staying in the home for years to come. I know when I was that age, I was still moving every 1-2 years for school. When I owned that house I only lived in it for 2 years, and got lucky with being able to sell for a profit when I wanted to move again.
Does the amount you spend each month make a difference with your credit score? Can I get a good one just spending 10 dollars a month?
Also, its not possible to get one when you are under 18 is it?
bigdave kudos to you for being so responsible at your age . There are many in my peer group that you are light-years ahead of. I graduated HS when I was 17. That year I got a student credit card with a $500 limit. I put my gas and groceries on that card and paid it off each month thereby accruing no interest. When I finished college I bought my first home at 21. BUT like others said having no credit history is not having perfect credit history. So get a credit card and use it wisely. Even a year of doing this can improve your FICO (your credit score) dramatically. Also make sure you maintain some kind of employment.
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. I really think in the areas I'm looking the next year will be a great time to buy.
If you can continue to save first, buy later, you will avoid the mistake that so many have made of buying everthing on credit. Look at the mess most people and governments are in today because of buying now, paying later. 
