What Is Considered Low Income?

• According to the U.S. Census Bureau, the annual income for a two-person household at the poverty threshold in 2008 is $14,051. After paying rent and other bills, there is little left over for financing a car or home loan.
  
  If you earn a low income, you may be turned down for traditional car and home loans. Depending on your credit history, employment status and other factors such as savings and debt, you may qualify for a loan, but at a high interest rate.
  
  For more information about state and local agencies that provide services and counseling for those with low income, contact your state's welfare or unemployment office.
  
  

Low-Income Home Financing Options

• Home financing options such as Federal Housing Administration loans were created specifically for those who are considered low-income. FHA loans are guaranteed by the federal government and are available with a small down payment, usually 3.5 percent.
  
  You can choose from fixed-rate and adjustable-rate loans. Fixed-rate loans ensure that your monthly mortgage payment remains the same throughout the life of the loan. Adjustable rate mortgages vary each month as a result of changes in federal interest rates.
  
  Veterans Affairs loans are also available to veterans earning low incomes. If you're a veteran, then you automatically qualify for a VA loan. With low interest rates, assistance with closing costs, and loan repayment options, these loans can make homeownership possible.
  
  

Low-Income Car Financing Options

• Car dealerships that advertise "Buy Here, Pay Here" offer weekly or biweekly payment options for those who earn a low income and those who have poor credit or no credit. Instead of going through a lender, these dealerships loan you the money directly for the car.
  
  Many dealerships that offer this type of service are willing to work with those who have special financial needs. Instead of searching for a car on the lot, dealers may ask you financial questions first. They may also run a credit check to see which cars you can afford. You can choose from the cars that fit in your price range.
  
  Carefully research these types of dealerships before purchasing a car. Test-drive all vehicles, ask about inspections and request a Car Fax report that details previous car ownership, accidents and other important information.