Home Buying Assistance For Low-Income Earners
For those with a limited income, renting a home can be quite difficult, let alone trying to buy one. However, with many different assistance programs out there, the process is becoming easier. If you need help figuring out how to get a mortgage and the home of your dreams, consult some of the following:
- Public Housing Agency
- Real Estate Agents
- Federal Housing Administration (FHA) Loans
- First-Time Homebuyers Program
Regardless of whether you are earning $15,000 or $25,000 per year, when you fall into the low-income category, it can be difficult to get a mortgage. Many lenders won't even look at your application until you make a certain dollar amount. This can be quite frustrating for someone looking for answers. Thankfully, there are a variety of different programs out there to help individuals who might have a little lower income than the average for the area. Check out some of your options below:
Public Housing Agency
One of the first things you can do is to contact the Public Housing Agency in your area and ask them about their Housing and Urban Development (HUD) Homeownership Voucher. If you have heard of Section 8, this falls in the same type of category, except it allows you to own a home versus just rent one. You can use your subsidy to pay a mortgage payment and step out of the renting game.
Real Estate Agents and HUD Homes
A real estate agent can help you with purchasing a HUD home. While these particular homes might be offered at a fair-market price, you can snag significant savings if you are working as a teacher, police officer, firefighter or EMT. These borrowers can easily secure a home in one of the federally-designated revitalization areas for about half the cost of what everyone else might spend.
Try speaking with lenders who have FHA insured loan programs available. Because many of these loans don't require that the borrower have a certain income, they tend to be more lenient in terms of lending money to individuals than what a traditional bank would be. With a traditional loan, you normally cannot commit to paying more than 36% of your income to your mortgage. However, these loans allow you to go as high as 41%, thus letting you get more home for your money.
Talk with your local credit union, bank or other government initiative to see what they have available for those purchasing their first home. You might be surprised by all of the different subsidies out there for those who have never purchased a home before. Some properties are specifically reserved for those who fall into the low-income category, thus allowing you to have more choices available to you.
Whatever you do, spend time talking with individuals in the area about the different programs available to you. There is no reason why you should feel as if you don't have any options available when there are plenty of different programs just waiting for you to come out and apply. By checking around, you can get the home of your dreams at a price that is going to work for you in no time. Homeownership isn't that far away, but you have to be the one to take the first step toward making it happen.
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