{"id":202423,"date":"2025-06-21T11:38:10","date_gmt":"2025-06-21T11:38:10","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/202423\/"},"modified":"2025-06-21T11:38:10","modified_gmt":"2025-06-21T11:38:10","slug":"im-26-this-is-how-i-bought-my-first-house-without-parents-help-and-no-savings-personal-finance-finance","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/202423\/","title":{"rendered":"‘I’m 26 – this is how I bought my first house without parents’ help and no savings’ | Personal Finance | Finance"},"content":{"rendered":"

A 26-year-old graphic designer has defied the odds by buying her first home without any savings<\/a> or financial support from her parents.<\/p>\n

Madison Hill secured a three-bedroom house in Tulsa, Oklahoma, on a $45,000 (around \u00a333,000) salary, using clever government-backed loans and assistance programmes to get on the property<\/a> ladder in one of the toughest markets in recent years. Now 30, Ms Hill recalls the summer of 2021 when she purchased her \u00a378,000 ($105,000) home. She said: \u201cI bought my house completely on my own at 26 with no savings and no help from any person in my life. I was making $45k a year, I barely had any savings for a home and didn\u2019t have to empty my account to buy the house.\u201d<\/p>\n

Ms Hill first saw the property listed for $95,000, but with fierce competition from cash buyers, she decided to offer $10,000 above the asking price. She explained: \u201cThe market was really hot back in 2021. The realtor said it was between me and another person.\u201d<\/p>\n

With no savings to put towards a deposit, Ms Hill turned to a Federal Housing Administration (FHA) loan, designed to help buyers with low to moderate incomes. This allowed her to put down just 3.5%, which worked out to around $3,500.<\/p>\n

However, because she had a master\u2019s in city planning, Ms Hill was aware of even more programmes to help her get onto the ladder. She applied for a down payment assistance programme, which covered the entire deposit required by the FHA loan.<\/p>\n

She said: \u201cDown payment assistance programmes are targeting low to medium-income people who are first-time home buyers. The one I have on my home, the terms are I don\u2019t have to repay them as long as I am living here. If I were to sell or refinance my home, I would have to repay them.\u201d<\/p>\n

The final hurdle was the $6,500 in closing costs, which cover legal fees, surveys, and other expenses. Ms Hill paid these by withdrawing funds from her 401k, a US retirement savings plan.<\/p>\n

She said: \u201cThe purchase of your primary residence is an allowable reason for early withdrawal from your 401k.\u201d<\/p>\n

Now, Ms Hill pays around $900 a month for her mortgage<\/a>, insurance, and property taxes, which is less than many pay in rent.<\/p>\n

What schemes are available for prospective buyers in the UK?<\/strong><\/p>\n

There is a range of different schemes available for prospective buyers in the UK, and here\u2019s a rundown of a few.<\/p>\n

First Homes Scheme<\/strong><\/p>\n

This scheme <\/a>offers first-time buyers in England the chance to purchase a new-build home at 30% to 50% below market value. Buyers must be at least 18, purchasing their only or main residence, and not earn more than \u00a380,000 (\u00a390,000 in London).<\/p>\n

However, local authorities may set additional eligibility criteria, such as prioritising key workers or local residents.<\/p>\n

Shared Ownership<\/strong><\/p>\n

The Shared Ownership scheme allows buyers to purchase a share (typically 25% to 75%) of a property and pay rent on the remaining portion.. Buyers can increase their ownership over time through “staircasing.” This option can be particularly helpful for those unable to afford a full deposit or mortgage<\/a>; however, it\u2019s vital to grasp the terms before signing up.<\/p>\n

Lifetime ISA (LISA)<\/strong><\/p>\n

The Government\u2019s Lifetime Individual Savings Account (ISA) is available to those aged 18-39. It allows people to save up to \u00a34,000 per year, after which a 25% Government bonus is added on top (up to \u00a31,000 annually). Funds can be used towards a first home (currently worth up to \u00a3450,000) or for retirement.<\/p>\n

Rent to Buy and Right to Buy<\/strong><\/p>\n

The Rent to Buy scheme enables tenants to rent a property at a reduced rate while saving for a deposit, with the option to buy after a set period.<\/p>\n

Meanwhile, the Right to Buy scheme allows eligible council and some housing association tenants in England to purchase their homes at a discount.<\/p>\n

Low deposit mortgages<\/strong><\/p>\n

Several lenders in the UK now offer low deposit mortgages, allowing buyers to purchase with as little as 1% or 5% down, and some even provide 100% mortgages for those with strong credit and stable incomes.<\/p>\n

However, these typically come with higher interest rates<\/a> and stricter affordability checks, meaning monthly payments can be much more expensive. Borrowers should carefully consider the long-term financial commitment and risks<\/a>, especially if property values fall.<\/p>\n

Other regional and specialist schemes<\/strong><\/p>\n

Other various regional initiatives and targeted programmes exist, such as the Deposit Unlock scheme<\/a>, which have specific eligibility and benefits.<\/p>\n","protected":false},"excerpt":{"rendered":"A 26-year-old graphic designer has defied the odds by buying her first home without any savings or financial…\n","protected":false},"author":2,"featured_media":202424,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3093],"tags":[51,81660,81659,474,81657,81661,81656,16993,81658,1269,81662,3713,2499,2516,81655,3028,16,15],"class_list":{"0":"post-202423","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-personal-finance","8":"tag-business","9":"tag-down-payment-assistance","10":"tag-fha-loan","11":"tag-finance","12":"tag-firs-time-buyer-schemes-uk","13":"tag-first-homes-scheme","14":"tag-first-time-buyer-schemes","15":"tag-first-time-buyer","16":"tag-first-time-homebuyer","17":"tag-house-prices","18":"tag-low-deposit-mortgage-uk","19":"tag-mortgage","20":"tag-personal-finance","21":"tag-property","22":"tag-property-buying-scheme","23":"tag-savings","24":"tag-uk","25":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114721161449009683","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/202423","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=202423"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/202423\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/202424"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=202423"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=202423"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=202423"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}