Buying a house is a rite of passage for many people–it can be one of the most important purchases you can make. The significance we place on home ownership and the investment it represents can make buying a home seem daunting, to say the least. This is especially true if you don’t make a lot of money. Is it really possible to buy a house without a big paycheck? There are many lenders willing to negotiate a low income home loan.
Of course mortgage lenders examine your income when deciding whether or not to grant a loan. But there are other factors involved that can help your case. First off, how is your credit rating? Good credit can work to your advantage. If you don’t have a lot of debt, and have a history of paying your bills on time, you are considered a good risk by many lenders. After all, it doesn’t matter how much money one makes, if it’s all going to credit card debt and the like.
Your choice of career can also sway lenders in your favor. If you’re a student just out of law school, it’s pretty much a given that you will be earning a substantial salary in the near future. If you’ve been at your current job for several years, a potential lender can see that you have a stable work history, and will most likely continue to stay employed over the duration of the loan.
The Keys to a Low Income Home Loan
Of course, the bottom line every lender is going to consider is the property itself. After all, if you end up defaulting on the loan, they will sell it to recoup their potential losses. A property that is a good investment, and likely to appreciate in the value over the years, is better for them. You don’t have to be a Rockefeller to buy your first home–under the right circumstances, you can find a low income home loan that’s the right fit for you.