First-Time Homebuyer Gains Homeownership Before Graduation
Tanner Aarsvold had always wanted to be a homeowner. And when the right property came along when he was just 19, he knew he had to take advantage of it.
Tyler was introduced to the property, which belonged to a friend’s parents, as a student. Located near Lake Zumbro in Southern Minnesota, Tyler spent countless hours at the home and even helped with upkeep.
As he was working to finish his degree at Rochester Community and Technical College, Tyler began renting the property.
The home proved to be the right fit for him, and with the owners looking to sell, Tanner had an opportunity. So last year, just as Tyler was in his final months of school, he started the process of purchasing the home.
“I knew in the future that I'm eventually going to have to buy a home, so I figured it'd be smarter to buy the home rather than rent because then I'm essentially investing into my future,” he said.
Compeer Home Offers Solutions
Ready to take the next step, Tanner needed a loan. But because he was a younger buyer, he didn’t have a credit history, which most lenders require.
Tyler’s mother recommended he go to Compeer Home, which specializes in rural properties. And through Compeer, Tyler met his loan officer, Chris Gartner.
Chris helped Tyler go over his options to get a first-time homebuyer loan for the home without a credit history, which included bringing his father on as a cosigner.
“Chris was very flexible on when he could talk to me because I was in school and work at the same time, and he really made it a great experience for me,” Tyler said. “He knew going into it I didn't have any credit at all, but he still made it work and I still got a good interest rate.”
Tyler also needed a purchase agreement, which is typically drafted by a realtor. But because Tyler already knew the sellers, he wasn’t using one. Compeer Home has experience working with unique rural properties and was able to help Tyler work with a law office to draft an agreement.
Thanks to these solutions, Tyler closed on the home shortly after.
Investing In the Next Generation
One of the reasons Compeer Home can take on borrowers like Tyler is because it can lend using portfolio funds.
Unlike some lenders, Compeer Home uses its own money to lend to clients like Tyler as opposed to an outside investment, like a government-sponsored Fannie Mae loan. Not only does this help clients without a credit history, but it also shows a level of trust and investment in younger borrowers.
“You could tell what kind of character he was by what he was doing and what he was trying to accomplish,” Chris said. “If you can be the first one to start that relationship, that's a good spot to be because he's got the huge upside of being young and hardworking.”
Life On the Lake
Now at 20, Tyler has plans to take his father’s name off the mortgage. After a year of on-time payments, he’ll have demonstrated enough responsibility to be the sole person named on the mortgage.
For now, Tyler has been enjoying everything life on the property has to offer. A mechanic by trade, he finds plenty to do in the property’s shop. Tyler is also exploring boating and waterskiing in the summer and snowmobiling and ice fishing in the winter.
And just like when he was in school, the home still proves to be the perfect place for Tyler to gather with his friends.
“It's nice to be able to know that I always have a place to come home to. It's nice to be out on my own. It's that next big step,” Tyler said.
Next Steps
Are you a first-time homebuyer? Connect with a local loan officer to get started today.
