The Federal Housing Administration (FHA) offers several loan programs to help you get a mortgage to buy a home on low income.
To buy a home with low income, you may need the assistance of a Federal Housing Administration (FHA) loan program. FHA is a branch of the U. S. Housing and Urban Development (HUD). This government agency has several loan programs that can help you buy a house even if your income doesn't meet traditional financing requirements.
If you qualify for an FHA loan program, you will get a home loan through a traditional lender and it will be guaranteed by the government. FHA-insured home loans for low-income homebuyers feature low down payments, reduced closing costs and an easy credit qualification process, making it easier to buy a home with a low income.
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FHA loans are written under 203(b) mortgage insurance guidelines. To qualify to buy a home under this program, you must be eligible based on credit qualifications established by the FHA. Only 96.5 percent of the price of the home is eligible for financing, so you'll pay the remaining 3.5 percent as a down payment. However, you'll be able to finance the cost of the mortgage insurance in with the home loan. The amount you may borrow is based on your geographic location. When browsing real estate listings, many are advertised as "HUD approved." This is a good indicator that the home meets the qualifications to be financed under HUD programs.
HUD also has a program for you if you are a teacher, emergency medical technician, police officer or firefighter. This program is the Good Neighbor Next Door program. It gives eligible borrowers a 50 percent reduction in the cost of a HUD-approved home if the borrower agrees to live in the home for at least three years. This program aims to revitalize particular neighborhoods around the country while helping those who serve others buy a home with a low income.
Your local and state agencies may also offer programs to help you buy a home with low income. Check with your local housing authority to learn about programs in your area and how to apply for them.
Most banks and lenders are approved by the FHA to participate in these programs, so with careful research, it's possible to find one that suits your needs. Reply! is a great resource for finding eligible lenders in your area who can help you buy a home with a low income.
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