How to Buy a Home Before 40

If you’re struggling to afford homeownership, you’re not alone. 

In the U.S. in 2025, the average age of first-time homebuyers clocked in at 40 years old, up from age 29 in 1985, according to a new report from the National Association of Realtors (NAR).

And waiting to buy isn’t necessarily great, long-term. Buying a home at a younger age — even if it’s just a few years — can have a big impact on a person’s financial future: Homeowners who buy a typical starter home at age 30 instead of 40 will have garnered $150,000 more in equity during that time period, NAR chief advocacy officer Shannon McGahn said in a release. 

But there is hope: special mortgages and smart saving strategies can help you get into a home sooner, even in today’s market. 

Here are four methods to help you buy a home earlier in life. 

Some mortgage lenders offer proprietary home loans specifically for first-time homebuyers. These options require low down payments, include grants for closing costs or down payments, and have flexible requirements.

For example, Rocket Mortgage and Guild Mortgage will provide homebuyers who meet certain criteria with a down payment grant of up to 2% for those who put down 1% to 2.99%.

Those who make less than 80% of the Department of Housing and Urban Development-defined Area Median Income (AMI), have a  of 620 or higher, and a debt-to-income ratio of no more than 50% are eligible for and Guild’s 1% Down.

Chase Bank also offers a mortgage geared toward first-time homebuyers: Its DreaMaker mortgage requires a minimum 3% down payment, and its homebuyer grant provides eligible borrowers with up to $7,500 to put toward a down payment or closing costs.

All three options require borrowers to pay private mortgage insurance unless they put down at least 20% of a property’s purchase price. 

If you have the income to buy a home but don’t have much saved, consider government loans.

Most conventional mortgages require a 5% down payment, but government-backed loans have lower requirements (and often lower rates).

Backed by the Federal Housing Administration, FHA loans require just 3.5% down for those with credit scores of 580 or higher. They are open to all, regardless of where you buy or your veteran status. Guild Mortgage even offers a no-down-payment FHA loan for qualified buyers. 

There are downsides to FHA loans: Having excellent credit won’t positively impact the loan rate the way it would with a conventional mortgage. In addition, the FHA has strict property condition requirements and won’t fund more than $524,225 to $1,209,750, depending on the home’s location. 

The Department of Veterans Affairs and the Department of Agriculture offer VA loans and USDA loans, respectively. Qualified borrowers can take out one of these loans with as little as 0% down. Veterans and those in the military are eligible to apply for VA loans and people buying homes in specific rural and suburban locations are eligible for USDA loans. (Like the FHA, these institutions also maintain varying property condition requirements.)

Veterans United is one of our top picks for a VA loan provider; it consistently scores higher than most other mortgage lenders in J.D. Power’s annual customer satisfaction surveys. However, it only has physical branches in 16 states, so it may be hard to get to if you’re keen on borrowing in person. 

Flagstar Bank is one of our top picks for USDA lenders. It offers qualified first-time homebuyers a rebate of up to 3% of the home’s purchase price through its Gift Program. It will provide first-time homebuyers in designated census tracts with up to $8,000 in additional grants. However, in general, its rates tend to be higher than the industry average overall. 

If your barrier to buying a home is your income, saving aggressively for a couple of years will allow you to spend more on a home sooner. 

Here’s how: The more you put down up front, the less you have to pay each month, which could mean the difference between being able to afford a house before you’re 40 or not.

For example, a person who makes a salary of $70,000 a year can can afford to buy a home for $257,200 if they put 20% down, compared to only $216,500 if they put 5% down.

Plus, if you put down at least 20%, you can avoid paying PMI, which costs 0.5% to 1.5% of the home price. That’s up to $531 per month for a median-priced home at $410,800. 

Whether or not you hope to buy a home before 40, working on your credit is critical to affording a home. The higher your score, the better your chances for landing approval (and lowering your mortgage rate).

Lenders usually assess a would-be homeowner’s credit rating through one of the U.S.’s three major credit reporting agencies — Experian, Equifax or TransUnion — which each weigh certain factors slightly differently than others.

Lenders may request your credit history from any of the three credit bureaus. 

Here’s what to do to boost your credit rating:

• Make sure to keep all credit card utilization under 10%: Your credit utilization ratio is the amount of revolving credit you use versus what you have available.
• Make on-time payments: How consistently you pay your minimum balance makes up 35% of your credit score.
• Lower your total debt: This makes up 30% of your credit score.

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage article is based on rigorous reporting by our team of expert writers and editors. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any third parties, and we pride ourselves on maintaining high journalistic standards.

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