There are a lot of people out there who assume because they do not make hundreds of thousands of dollars a year that they will never own a home. The fact of the manner is that there are many low income home loans that you can choose from to help you get into a home, even if you don't make six figures a year! This is good news for a growing percentage of the population who would like to own a home but doesn't have the funds necessary to make a sizable down payment or even pay expensive closing costs.
Buying a Home on Limited Funds
Home ownership is something that so many people dream of, but a lot of people assume that this simply is not something in their future. It can be difficult to qualify for conventional loans when you do not meet certain income standards, FICO score requirements, or you cannot come up with a sizable down payment. The great thing is that there are some low income home loans that will allow you to get into that home that you have been dreaming of at a price that you can afford.
One way that you may be able to get into a home on your income is by applying for an FHA loan. These loans date back to the 1930's during the time of the Great Depression. These home loans were intended for those that did not have a lot of cash on hand because no one had a lot of money during The Depression. When you apply for this type of loan you will not need to meet any FICO requirements; you'll only need to have at least a limited income and a qualifying debt to income ratio. You would be surprised how simple these loans are to qualify for, even when you don't make a lot of money.
FHA home loans are also a great option because you can get into a new home for as little as 0-5% down on the home. What this means is that instead of having to come up with 15-20% of the purchase price of the loan, you will be able to move in for considerably less. In addition, there are many FHA based programs that will also help you come up with any money that is needed for closing costs or a down payment. This can help you make home ownership much more affordable in the short term as well as in the long term.
The government offers all of these low income plans because they know that if you work hard that home ownership should be an option. Be sure to look into these options before you simply assume that you cannot ever buy. You may be surprised to find that you are a great candidate for one of these programs.
