American Hope Resources - Help & Assistance Programs

How To Buy A House With Low Income

Don’t let a low income keep you from thinking you can buy a home instead of renting it.

If you need help right away, this relief program will direct deposit a short term loan into your bank account. Review the terms of this funding closely before accepting these funds.

With so many programs at your disposal, becoming a homeowner is now easier than ever. And this is true even if your finances are less than ideal.

Each month you pay your landlord a considerable chunk of your income. And once you hand over that check, you may wonder to yourself, “Will this ever end?”

The only way it will end is by becoming that landlord and owning your home. But this may seem impossible if your income isn’t exactly high and you have other obstacles standing in your way like bad credit and a lack of down payment.

Luckily, it is possible to own a home, even if those issues plague you, thanks to these low-income housing assistance options.

Get Help With Your Down Payment

It can be impossible to save towards a down payment if you’re barely getting by each month. Since even affordable homes are expensive relative to other purchases, getting the down payment you need may seem like the biggest obstacle in the house buying process.

How can you overcome this issue? By getting down payment assistance (DPA) through a variety of sources, such as the government, charities, or your employer.

Stop! If you need financial assistance such as money to pay bills, a personal loan, or debt relief. See what resources are available to help you today.


Whether in the form of a loan or a grant, down payment assistance gives an average of $12,000 towards people’s dreams of owning a home. That’s quite an amount of cash, and if you get it as a grant, you won’t have to pay it back.

Why don’t more people use this form of low-income housing assistance? Because they aren’t aware that it’s out there.

As for how to qualify, income is usually taken into account. You could also get DPA by living in an area that’s underserved or in redevelopment.

Use a Personal Loan

You could set your sights on an unusually affordable home that’s priced below the market. Why would someone set such a low price on their home? Because they want to sell it quickly.

Homes with low purchase prices can be tricky to get mortgages for. You can opt for a personal loan, however, which can be approved quicker than a mortgage and don’t require appraisals.

Qualify for a Higher Mortgage

Several cities, counties, and states issue mortgage credit certificates (MCCs) that can help you get approved for a higher mortgage than you usually would due to your low income.

If you fall within specific income guidelines, you can secure a tax credit that can be added to your qualifying income when applying for a mortgage.

Apply for One of These Low-Income Home Loan Programs

Whether your credit is less than stellar, your income is low, or you don’t have any money saved for a down payment, here are some loan programs that can help you become a homeowner:

  • USDA home loans – Ideal for rural homes. 100 percent financing with no money down.
  • FHA loans – Allow you to get a loan if your credit score is low or you have a high debt-to-income ratio.
  • HomeReady/Home Possible Advantage loans – Small down payments, lower mortgage insurance, and reduced closing costs from Fannie Mae and Freddie Mac.

Eric Tomasso