How Can I Get a Low Income Housing Loan?

The fact that you are not making a lot of money should not make you believe that you can’t get financing for buying or building a home. There are millions of low income earners in the United States and most them live in their dream houses because they were able to take advantage of the low income housing loans. Better for you, there are a myriad of options you can consider when you want low income loans and they include but not limited to the following-:

USDA Home Loan

The USDA Home Loan gives you the ability to purchase a home without any down payment. The program is also known as Rural Development Loan and it is available for properties designated as rural areas in the United States. What’s more, the loan is also available for individuals who don’t already own a proper home and those whose incomes are 115% or less than that region’s area median income.

USDA Low Income Loan

This program is designed specifically for home loans for the low income families. It is also known as Section 502 loan and they are availed to individuals whose incomes fall between 50% and 80% of the area’s median income. If you are interested in this loan, be sure to check if you qualify then also have in mind that most of the standard lenders do not offer this facility and it will be imperative for you to apply directly through USDA.

FHA Loan

This is another awesome mortgage options for the low income earners in the United States. It is a government backed loan type designed to help low income individuals to access the necessary funding for purchasing a home. Some of the most attractive features of this facility include-:

• It accepts lower credit scores than conventional financiers.
• requires on a 3.5% down payment
• The seller pays all or some of the closing costs.

FHA 203K Loan

This is basically an FHA loan, but it comes with an added advantage in the sense that it facilitates the purchase prices as well as the rehabilitation costs of the mortgage. It is considered as one of the best low income home loans because it allows individuals to take advantage of lower prices in getting quality and affordable housing.

VA Mortgage

If you have served in the military, then the VA mortgage loan is a nice option for low income housing loan. It doesn’t come with any down payment and most of the times, the seller will take care of all or most of the closing costs.