How do we go about buying a house on a lower income?

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My fiance and I are trying to find and buy our first home. We are getting married in March and would like to have a home of our own. We are both fairly young and do not have a large income. He has taken on the responsibility of raising my two daughters with me and is our main source of income. We know there are ways out there for low income families to buy homes but have not been successful in finding those sources on our own. Rent in our area is very high so we are currently living with his parents. We would greatly appreciate all suggestions or help anyone can give us!!!!

10 comments to How do we go about buying a house on a lower income?

  • mazziatplay  says:

    Bank of America has a program for first time home buyers called ACORN. I don’t know a lot about it but I believe the rate is lower for the first few years to give you a chance for your iincome to grow too.

    Call your local branch and beware of the sharks on here spouting “I can get you the best rate”.

  • moose  says:

    FHA loans

  • newmommy  says:

    Make an appointment with a mortgage broker. They will sit down with you (usually for free, but ask to make sure) and see what your options are based on your income. Also, visit your city’s website and see if they have any assistance programs for first-time buyers. Good luck!

  • newmexicorealestateforms  says:

    Each state has programs available to folks like you, in addition the federal government has programs that can help you out. You will need to search your state’s web site for the programs available in your state, you can do that by going to this link and finding your area
    All US States Constitutions and Web sites: http://www.constitution.org/cons/usstcons.htm
    Search for cities & Counties in the US: http://www.naco.org/Template.cfm?Section=Data_and_Demographics&Template=/cffiles/counties/city_srch.cfm
    In addition here are links that you can research for low income programs
    FHA Federal Housing Administration loan programs: http://www.fha.com/
    FHA Rural Housing loan programs: http://www.rurdev.usda.gov/rhs/common/indiv_intro.htm
    US Government Housing assistance grants all areas:
    http://12.46.245.173/pls/portal30/catalo
    US Federal Domestic Assistance catalog for all Federal Programs available to State & Local Governments & the Public
    http://12.46.245.173/cfda/cfda.html
    All government Benefit Programs http://www.govbenefits.gov/govbenefits_en.portal
    Low Income Home Purchase Assistance (Private): http://www.nehemiahcorp.org/
    AFFORDABLE HOUSING CONTACT LIST FROM REALTOR.COM US GOVERNMENT AND ALL STATES: http://www.homefair.com/homefair/servlet/ActionServlet?pid=187&art=contlist&cid=homefair
    Low income housing assistance (private) Habitat for Humanity: http://www.habitat.org/
    USDA Rural Housing programs & eligibility requirements: http://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do
    Finding out what benefits you are eligible for, with the US Government
    http://www.govbenefits.gov/govbenefits_en.portal?_nfpb=true&_pageLabel=gbcc_page_questionnaire&_nfls=false

    That should give you some direction as to what is available to you and your fiance. I wish you the best of luck

  • loancareer  says:

    Be Careful! While there are loans out there for you I’m thinking you probably can’t afford it. Foreclosure is no fun.

    States have several programs designed to help low income families realize the dream of home ownership. In NJ we have the Mount Laurel Act. Builders and Townships must set aside a % of homes for low to moderate income families. Contact your local housing authority or HUD office to see what is available in your area.

    Pros: Down the street from me there are townehomes listed for $485,000. The Mount Laurel homes in the development are selling for $165,000.

    Cons: Once Mount Laurel -- Always Mount Laurel. If in 5 years the townehomes I spoke of are worth $600,000 the Mount Laurel homes will be worth about $180,000. If you choose to sell you can only sell to another low-income family. You never realize the true advantages of homeownership -- EQUITY.

    In closing, consider your options carefully. Be sure you can afford what you take on, today and 10-years from now. Do you homework. Your deam is out there!

  • Lunna  says:

    There are some banks that have savings programs for first time home buyers that are very beneficial.
    The one I remember had a program that matched your savings for 3 years dollar for dollar up to 5,000.
    Which means if you saved 5 ,000 in 3 years they would up the amount to 10,000 toward the purchase of a home. So the bank you pick is very important. Good luck.

  • sarah W  says:

    save up so you have 20% down

  • linkus86  says:

    Each state has a special program for low income buyers (funded by the federal government), and it amazes me how difficult they make it to find them. I am not a mortgage broker so I don’t want to sell you a loan but you can email me and tell me which state you are in and I will point you in the right direction, or you can “TRY” to find it on your own by going to your state government housing department looking for “down payment assistance” which can be tricky because they might redirect you to somewhere like Nehemiah, which isn’t what you are looking for. The programs generally offer a lower than normal interest rate and can offer a certain amount of money to cover down payment and closing costs that isn’t exactly a grant, but a small second mortgage that you never have to pay back and is forgiven in the first 5-7 years of ownership. There are credit and income requirements for these programs and sometimes can be used in association with other government programs (like FHA) to offer further savings. Good luck!

  • Mortgageman  says:

    If rent is high, mortgages are high. I would not worry about a home right now. The current market conditions won’t be kind to you. I would consider relocating to a more affordable area or state, rent and save your money.

  • I_Love_McRedneck  says:

    I would caution you to understand that if rent is too expensive, then buying a home isn’t going to be any cheaper unless you have a considerable down payment.
    Living with your parents should afford you the ability to be saving up at least 1/3 of your pay, becuase that’s what mortgages tend to be for most people and you currently don’t have one. I’d save up at least 20% as a down payment. Higher down payments will get you a better shot at a loan, and will give you probably some better itnerest rates too.
    If you’ve been living with your parents and don’t have any money saved up, shame on you -- if you have to live rent free in order to survive, you’re not going to make it as a home owner. That’s the first thing the loan officer is going to ask -- how much do your currently pay in rent? Nothing? Well, how much money do you have in the bank.
    Good luck to you -- owning a home can be a great thing unless you don’t have any money, then it’s the worst decision you could ever make.

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