RoxanneDo you look at your monthly rent payments as burning money? Are you sick of investing your hard-earned money in your landlord’s mortgage? Would you like to have a home you can finally call your own?
If you answered yes to any of those questions, here’s some excellent news: You can become a homeowner even if you don’t have a ton of savings or make a lot of money, as the government has a few programs that could be right up your alley:
The Homeownership Voucher Program
If you’re familiar with the Department of Housing and Urban Development (HUD), you probably know about Section 8. Formerly called the Housing Choice Voucher Program, Section 8 pays a portion of your monthly rent directly to the landlord. This makes rent much more affordable so you can save for other expenses.
While Housing Choice Vouchers are ideal for renters, the HUD also has the Homeownership Voucher Program. Who is it ideal for? You guessed it – people looking to own a home.
If you qualify for a Homeownership Voucher from the HUD, you can make your dream of owning a home a reality, no matter if your income is low or if you currently reside in public housing. With the voucher helping with housing expenses or your mortgage, you can begin living in a home that’s yours instead of your landlord’s.
FHA Loans
The Federal Housing Administration (FHA) handles this program that makes homeownership more accessible, even for those struggling financially. It achieves this goal by offering loans that don’t feature strict requirements that keep many people from getting a mortgage.
What keeps mortgage approval out of the reach of many? A solid credit history, as many home loan providers want borrowers to have high credit scores. Beyond that, aspiring homeowners usually need significant savings for a down payment as well as closing costs.
With an FHA loan, you don’t need to worry about having a high credit score. You can make a down payment of just 3.5 percent of the purchase price of the home. And you can also look forward to lower closing costs. All of the above make owning a home a lot easier.
HUD Homes
Have you looked at the price of homes out of curiosity, only to be shocked at how high they are? This alone can keep you from looking into homeownership any further. With a HUD home or HUD real estate owned (REO) property, however, you can find a steal at a much more affordable price.
Since the HUD is in charge of the FHA loan program, they sometimes take over homes when owners can’t pay their mortgages. Once they do this, they open up a world of opportunity for people looking to own homes that aren’t set at ridiculously high prices. As a bonus, you could also get low down payments and closing cost assistance when buying a HUD home.
You can look for HUD homes online by using this tool.
