Owning your own home is part of what they refer to as “The American Dream.” Most people dream of being able to own their own home, and for good reason. Being able to own a home means that you will have something tangible and in time you will no longer have payments on it, beyond your yearly property taxes. Owning real estate is also one of the ways to get wealthy, because house values go up a lot over the decades. There are several places that offer home buying assistance for low income families.
In recent years especially, home buying has become more challenging for many people. The cost of homes has sharply risen, and salaries have not kept pace. There are a variety of factors that have made it more difficult for people to purchase a home, which means that families will need assistance or they will not be able to become homeowners.
Programs Offering Home Buying Assistance
Millions of low income families would love to purchase a house, only they lack the resources to be able to do it. Yet they can afford it many cases, because the rent they are paying is equal to or more than what they would pay each month for a mortgage payment to buy a home. They just need the help getting into the home and then they can afford the monthly payments to buy it.
Below you will find a variety of options to consider turning to if you need help being able to buy a home. Contact as many as you feel qualified for, or that interest you, so you can find one that is a good fit for your economic situation. With some determination and contacting the programs, there is a good chance you may be able to find one that will give you the help you need.
Housing and Urban Development (HUD) – This is a government agency that is in charge of housing issues in the country. They have a variety of programs that help renters and homebuyers, covering everything from providing rental assistance to helping homebuyers who are facing foreclosure. They also offer programs to help low income families be able to purchase a home. To qualify for the programs offered through HUD, you have to have a low income and be a citizen or legal non-citizen. They offer information about how to become a home owner, how to purchase a HUD home, and more. HUD owns homes that they will sell to people, which makes it easier for some for low income families to be able to purchase a home. To get more information about their programs, contact your state’s HUD office. To find a list of HUD offices in each state, click here.
United States Rural Development Program – This program is part of the federal government. It has been created to encourage development in rural areas of the country. Those who have a low income and want to purchase a home can get help through this program, if they are willing to buy or build a home in a rural area of the country. The program provides both grants and loans. While grants do not have to ever be paid back, the loans do have to be paid back over time. Which one of the programs you qualify for and how much financial assistance you get to purchase home is determined by your location and income level. To get more information about the program, click here.
Fannie Mae – This is a national lender that provides many home buying loans around the country. They have programs in place to help those with a low income be able to purchase a home. Typically, they have programs that will allow people to finance up to 97% of the home’s price. This means that it is a lower down payment for the buyer to come up with. They provide a variety of solutions to help people of all income levels be able to buy a house. They also offer online tools that you can use to determine how much of a home price you can afford and what you would need to be able to purchase it. To get more information about their programs offered, click here.
FHA Loans – The federal government tries to help low income people be able to purchase a home. They have a program that provides what they refer to as FHA loans. You do have to meet certain criteria to be approved, but it is easier to get a FHA loan than a traditional one. A traditional loan to buy a home would usually require you to put 20% of the home price as a down payment. The FHA loan program greatly reduces that and asks for around 3.5% of the home price to be put down as a down payment. To get more information and apply for an FHA loan, click here.
Habitat for Humanity – This is an organization that helps people become homeowners. You have to help build your home, along with other volunteers, and then it is yours. They have helped many people around the country to become homeowners this way. They offer several program variations so that they can help more people buy a home. To get more information about obtaining a Habitat for Humanity home, click here.
There are a variety of other ways to be able to purchase a home. These include renting to own right from the current owner, and looking for builders who are offering incentives to home buyers. There are some home builders who may be offering a special rate for new buyers that makes it very enticing to purchase a home. For example, there may be a new condo complex being built that is offering a “$1,000 down buying program.” With such a program, you would only put $1,000 down and then begin making monthly payments. You can also turn to local banks, lenders, and credit unions to see if they have special programs to help those with a low income.
