If finding home loans for low income families is important to you, then you should know that there are opportunities out there for you to own a home. While you may not qualify for an FHA loan because of your income, it’s totally possible to qualify for another type of home loan. There are 3 home loans that you can possibly qualify for.
The first home loan is not financed through the banks nor through the government. Often times, you may not even have to put any money down. On occasion you will, but you’ll never have to put down more than 2% of the purchase price, if any at all.
So what kind of home loans for low income families am I talking about? Well, this first loan is considered a lease-to-own home. It works like this. You find a homeowner who is having difficulty selling their home (and who isn’t in this market) and offer them a lease option (or rent to own). Try to negotiate the loan so you don’t have to put any money down, which works in most cases, but in a few you’ll have to put something down. Instead of paying the bank a mortgage payment, you’ll pay the homeowner a monthly amount just like you were renting, after you draw up a lease to own contract. You draw up your loan terms and let the homeowner know when you intend to buy. For instance, you could do a 36 month lease to own, which means after 36 months, you will apply for the mortgage. If you pay your payments on time every month, then the bank will look favorably upon you. Also, during this time your landlord has the option to declare a certain percentage of your monthly payment as a ‘down payment’.
The next home loans for low income families that you may be eligible for is known as a rural housing guarantee loan. Eligibility requires applicants to have an income up to 115% of the median income of the area and be without appropriate housing.