How to Obtain a Mortgage on Low Income
- 1). Decide how much home you can afford. There is an excellent calculator at the Ginnie Mae website (see Resources) that will help you determine the maximum price you can pay for a home. One of the main reasons that most low-income home mortgages are denied is because the borrower is trying to buy a home that he just cannot afford.
- 2). Make sure your credit is in order. Take advantage of free home buyer counseling sessions offered by organizations and government offices such as the U.S. Department of Housing and Urban Development. They sponsor housing counseling agencies across the nation that will offer advice on how to repair your credit in preparation for buying a home.
- 3). Research the various government mortgage offerings. Loans backed by the Federal Housing Administration, for instance, offer lower down payments and are good options for low-income buyers. There may also be a state-sponsored program, such as the Housing For Nevada Homeownership Program, and the Key to Homeownership Program in Michigan.
- 4). Save your money for a down payment. FHA-backed mortgages, if you qualify, have down-payments as low as 3.5 percent of the purchase price. Your housing counselor can give you a better idea of how much you will need to save.
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