Very Low To Moderate Income Housing Loans

Home ownership is a dream for most people. Many people think that if they have a low income, then they will not be able to get a loan. However, you do not have to let a low income stop you from getting a loan. In fact, there are many loan programs available for low-income earners.

USDA Low-Income Loan

These loans are also referred to as Section 502 loans. They are specifically for low-income earners. In order to qualify for one of these loans, your income must be 50 to 80 percent of the median income in the area. You can get a 33 or 38-year loan term. There are also subsidies available for people who are unable to make the full payments every month.

This is not a loan that you can get from standard lenders. You will have to apply for the loan through the USDA. Even if your income is too low to qualify for other types of loans, you may able to get one from the USDA.

FHA Loan

The FHA loan program is a loan that is backed by the government. It allows you to get a home with a 3.5 percent down payment. Your seller will pay all or part of your closing costs. Even if you do not have a good credit score, you can still get a FHA loan.

Another one of the advantages that come along with getting a FHA loan is that you can get a co-signer. A co-signer is someone who agrees to make the loan payments if you are unable to for any reason. The co-signer does not have to live in the home with you.

FHA 203K Loan

This type of loan is similar to the FHA loan. However, it has a feature that does not come with the traditional FHA loan. If you get a FHA 203K loan, then you have the option of financing the rehab costs and the purchase price into the mortgage. This is a great loan for low-income earners because it makes it easier for them to repair their home.

If you get a traditional loan, then the lender would have to make sure that the property meets certain standards. However, you can get a FHA loan to finance the repair in order to ensure that the property meets the standard.

VA Mortgage Loan

If you are in the military, then you have the option of getting a VA loan. In order to qualify for this loan, you must have served in the military for at least two years. You do not have to purchase mortgage insurance if you get a VA loan. You also do not have to worry about making a down payment. Because you can get a VA loan without mortgage insurance, you will be able to get lower mortgage payments.

Good Neighbor Next Door

The Good Neighbor Next Door is a program that is offered by the U.S. Department of Housing and Urban Development. It allows teachers, police officers and emergency personnel to get a home with a 50 percent discount. You will need to go to the Housing and Urban Development website and make an offer. If more than one person makes an offer, then the offer will be randomly selected.

There are many advantages that come along with getting a loan through the Good Neighbor Next Door. Not only will you be able to get a house with a 50 percent discount, but if you stay in the home for three years, then the debt will be erased. Furthermore, you will only have to pay a $100 down payment and reduced interest rates.

Mobile Home Loans

If you are interested in getting a mobile home, then you can also get a loan for one. You can get a loan for a mobile home that was built on or after June 15, 1976. You will not be able to get financing if the mobile home was built prior to that date. You can get a FHA loan for a mobile home. You can still get a loan with a 3.5 percent down payment. However, the property will need to be inspected before you are approved for the loan.

Featured Articles

Car Donation Programs Assisting Low-Income Families In Need

Transportation is a necessity, especially for low- income families in areas where public transportation is non- existent or employment opportunities are located outside of their geographic area. For many, transportat...

Read More

When Are Rent To Own Homes A Good Idea?

Most people dream of owning their own home and having a space to live in long-term. Those who are not ready for the commitment or don't qualify for a mortgage can consider a rent-to-own agreement. There are a number of reasons that you ...

Read More

Hire Purchase Explained In Detail

It is not always possible to buy pricey items such as cars or electronics up front. Borrowing a loan often comes off as the most prominent especially when the buyer prefers to own the item outright and evade annual restrictions such as a car'...

Read More

20% Down Payment Myth When Buying Your Home

Many consumers believe the American dream is unachievable for them because they haven’t the 20% down payment necessary to purchase a home. While the wisest financial decision you can make when buying a home is putting money down, ...

Read More