Even though we are still living in a difficult economy, it is still possible to get home financing on a low income. Really! You can still be a home owner right now with little to no money down and lower than average income compared to the national median. You simply just need to know where to look, what programs to apply for, and be open to relocating for that special, once in a lifetime deal.
Foreclosures are at an all time high and there are thousands of properties on the market right now being held by banks – and banks do not like to be owning residential properties. Many of these banks will give you home financing on a low income if you simply take the time to call them and express your interest. Of course you will need to verify for you income and purchase home mortgage insurance, also known as HMI, but the insurance premium will be included in the mortgage. Not every bank will accommodate you, of course, but for many potential homeowners, all it takes is finding the right foreclosure and contacting the bank that is holding the property.
There are also government programs that will help you get home financing on a low income. The Department of Housing and Urban Development, or HUD, is responsible for any home that goes into foreclosure where the mortgage was government backed, such as Fannie Mae or Freddie Mack. Not only can you get a HUD home at a ridiculously low price, but in many cases they will be able to assist in obtaining financing for that home as well for a commitment to stay in that home and upgrade the property over a specific period of time.
Some states also have a local financing authority to assist in getting you home financing on a low income. Requirements for this program very by state and can include actual income, assets, and access to general supports. To see if you qualify for your state’s program, simply access your state’s website and search for your local financing authority.
If you do not qualify for traditional financing, there are other methods to obtaining a home, such as going through a non-profit like Habitat for Humanity. If you qualify for their program, in exchange for your elbow grease in building homes for others they will build a home for you and work together with you to get your home financing on a low income. Many of their programs also require a time commitment in the home.
If you have a dream of home ownership, it is not too late to get home financing on a low income – all you have to do is act today, find the right property, and start negotiating with the lender. Before you know it, you too will be a home owner!