How to get a mortgage even if you have low income. Three of the best possible steps examined.

1. How to Get a Home Loan with a Low Income
By http://www.LendingAndCredit.net
Figure 1: Get a Home Loan Even If You Have Low Income
Those who have low income will always face problems when it comes to getting
approved for home loans. And it is not only with mortgages, but also with getting
approved for credit cards and other type of loans. However, this does not mean
that all is completely lost if you have low income, and you would want to own
your own home. There are a few steps you can take to get approved for a
mortgage, despite your income status.
So what are these options that will help people with low income status obtain a
mortgage? There are two options in my experience. These are:
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2. (1) The Federal Housing Administration, FHA, Loan program. The program helps
those with low income to acquire their own homes. We will discuss how to go
about the application process and all that you require to get you approved later in
this article.
(2) Using your assets such as a car as collateral to get the mortgage.
(3) Using a co-signer, also known as co-debtor to apply for the mortgage with you.
OK so let's get into the details of each option.
The FHA Loan Program for Those with Low Income Levels
1. The Federal Housing Administration, FHA, Loan program is there to assist
people who have low incomes to be able to acquire their own homes. It is
specifically call the FHA 203 Loan program.
So how do you qualify? To qualify for the FHA loans program, you need all your
personal finance documents available. Also if you have any assets, ensure that the
documents covering them are also made available.
So what happens when you submit your application for the FHA program? Your
income-to-debt ratio is determined. This ratio is simply how much debt you have
compared to the amount of income you have including all your assets. It is worth
noting that this test differs from state to state.
The test is conducted to determine if there is the slightest possibility of being able
to pay for the loan that is given to you through the program. So your credit score
may be borderline good, you can still qualify for this loan and be able to own your
house. There are people with a credit score as low as 580 who have been
approved for the FHA loan and are now homeowners.
2. So how do you make your application? Go to your mortgage officer. Let them
know you want to apply for the FHA 203 home loan program so that they can give
you the appropriate application forms. Fill the forms out. If there is something
you do not understand, let the mortgage broker help you out.
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3. 3. One thing you need to understand about the FHA home loans program is that
the loan from the program have fixed interest rates and it stay the same until you
decide to refinance. If you application is approved, you will get a confirmation
from the FHA office in your state and also from the mortgage broker you chose.
So this one option of getting a home loan with a low income status.
Other Options beside the FHA Loan Program
For some reasons, there may be people who will not be able to qualify for the
FHA 203 Home loan program. In that case, you can consider these other options
to help you get a mortgage if your income status is low.
4. Using your assets as collateral. Although your income status may not be good,
it is possible that you have assets you can use collateral to help you a home loan.
These assets could be your car, bonds and other investments you may have. Talk
to your bank about the possibility of using any asset you may have as collateral to
help you a home loan.
5. Using a co-signer. If the two options above do not work out for you, the last
option is to consider getting a co-signer to sign the loan application with you. A
co-signer is ideally a relative such as a parent, sibling or spouse. They should have
an excellent credit score since the banks or financial institution giving you the
home loan will make their decision based on the co-signer's credit rating.
6. Once you get your co-signer, go ahead and make your application for a home
loan with a private mortgage lender, using your co-signer credentials as well as
yours as well as your own. Typically, you will need to have the co-signer go with
you to the offices of the lender to sign the forms. In other cases too you can
simply get them to sign the forms and then you would present it to the lender.
7. One characteristic of co-signed loans is that of defaulting. It is therefore
important to have clear, documented steps of what will happen to your co-signer
if you default on repaying the loan. Co-signer assumes responsibility for the loan if
you default. So have a clear, written plan in place if this should happen.
If you follow these steps, you can sure of getting a home loan approved even if
you have low income status. Now here is what you need to do next:
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