Authored by Rodney Southern in Mortgages
Published on 04-28-2009
Obtaining a low income mortgage is all about selecting the right price range and shopping around. Many people that do not make a ton of money still want to own their own home. For those that are in the low income range, these mortgages can seem impossible to find. If the buyer were to take a close look at the home they are trying to purchase, they usually will find that it is because they are trying to buy more than they can afford. This will cause a low income mortgage to be rejected quicker than anything. So, how does one go about finding a low income mortgage that actually gets bought?
The first step in obtaining a low income mortgage loan is to get educated about your financial means. That is, you should find out exactly how much home you can afford. This is the absolute biggest key to obtaining a low income mortgage loan, because if you are attempting to buy too much house, you will be rejected for sure. The easiest way to know how much house you can afford is to sit down with a credit counselor in your area. They can look at your income, outgoing bills, and future financial outlook to determine what you can afford.
Now that you have your price range in order, the next step to obtaining a low income mortgage is to insure that your credit is in order. The better your credit rating is, the more home you can afford as well. If you spend some time reviewing your credit report and repairing any issues such as late payments, outstanding balances, and judgements, then you will be in the perfect position to then seek out a low income mortgage.
Now that you have your credit and financial ability in order, it is time to save for a down payment. The more you have to put down on a low income mortgage, the better the terms and rates will be. Because you have a low income, you should be careful to get the payments as low as possible. It is vital that you are able to afford the mortgage, as well as have enough to save for emergencies when they arise.
The government also offers help to those people who want to own their own home, but do not make a high income. These programs often will back the mortgage for banks allowing the lender to offer better terms, more money, or more options in general. Credit counselors in your area can refer you to these government programs or the information is widely available on the Internet.
Obtaining a low income mortgage is no longer a pipe dream for American families. Finding the right situation for your financial situation is your key to success. Get smart about what you have and can afford, and then find the home that fits that profile. You will be owning your own home in no time.