Buying a home involves several complexities like it should not exceed your budget; appropriate mortgage loan has to be approved, choosing the property at right location, etc. In case you are living in a rented apartment, it’s very tough to allocate funds for down payment as well as to get approved for home loan is yet another tedious task for people earning low income.
Thus we can infer that the income plays a major role while purchasing a home, considering the fact that the investor earns only low income;Zack Childress real estate reviews talks about how to do home purchase with low income.
- Increase Your Credit Score
- Choose a Home that Fits Your Budget
- Choose the Best Mortgage Lender
Different ways to get finance for your home
- Special schemes
People earning low income are benefitted by certain privileges as follows.
- Discount on mortgage payments
- Low down payment schemes
- Grants and loans for down payments.
- Under-market interest rate and payment
No special types of home like vacation or mobile homes would be allowed for first-time homebuyers. Staying in rental property is also prohibited and buyer should have prior knowledge on home-buying process.
- For investors buying properties outside the city limit are eligible to avail USDA (rural housing) mortgage schemes
- VA home loans are not specific to low income category members, it has several advantages like
- No minimum credit score
- No down payment requirement
- No mortgage insurance
- HUD foreclosed homes where 50 percent discount is sanctioned for professions like nursing, teaching. When you avail second mortgage and stay in the same place for 3 years, the loan gets cancelled automatically. Incentive programs also conducted for these people.
- Manufactured homes like modular and mobile are cheap.
- When income eligibility guidelines are met, you can widen your home buying capacity. Mortgage credit certificate contains this information underwritten by the lender.
- DPA is down payment assistance where charities or NGO or government offer you special loans
- Special grants for college students
- Low income purchase assistance programs for first-time homebuyers provide funds – $60,000 down payment, acquisition and closing. Single-family homes, condos, town homes can be purchased. There are certain terms and conditions that an investor should qualify for.
- Federal housing administration loan schemes
- Energy efficient mortgage (EEM) loans schemes
- Single-Family Housing Direct Home Loans
- If you are in need of loan only for renovation , then FHA 203K loan will be suitable
- Conventional loans
When you avail loan, make sure that it is from a reputed and certified organization or bank; check whether the scheme exists for real. Many scammers pretend to be bankers and steal all the information and betray the investor. Make sure you don’t fall into such trap.
To learn more about housing loans, check out the articles in Zack Childress REI quick cash system.