You may have always dreamed of owning a home and as a parent, you want to find a safe space for everyone, where your children can grow up in a comfortable environment. However, buying that home may seem challenging if you’re in a low-income bracket. Fortunately, there are options available and steps you can take to achieve this dream.
Consider the Pros and Cons
Before you commit to the big decision of buying a home with an Arizona VA loans or FHA loan in Arkansas, you may want to first take some time to consider the pros and cons of buying a home for your specific situation. These pros and cons below are typically what most people think of when considering a large financial decision like this one:
- Tax benefits. There are different deductibles offered for those who own homes, from mortgage interest to home equity loans, etc. Tax benefits are always something to look forward to.
- You’ll be able to provide a stable home for your family. This is a big deal for most parents and one that may be the impetus behind you’re decision to find a home.
- You’ll have privacy and the ability to make improvements. Most places won’t allow you to make any improvements to the home or apartment you’re renting but when you own your own home, you’ll be able to do what you want. You’ll also be able to have more privacy than you would if you were renting an apartment. Let’s be real; we all dream of having our own home to make pretty and decorate.
- A fixed payment every month. While most places will increase rent every year, your fixed mortgage payment will allow you to rest easy, knowing you have the same amount to pay every month. As a parent, it’s helpful to have a clear understanding of your monthly bills, so you can be sure you’re covering everything. Ever-changing rent prices can be stressful.
- Initial costs are quite high. From the home inspection to property taxes, title search, and homeowner’s insurance, there are quite a bit of costs related to the actual process of buying a home.
- You’re committed to that house. If you’ve always your freedom to move when you like, that’s not going to be so easy once you own your home.
- You are in charge of your home. While living in an apartment allows you to easily call for maintenance when you need to fix something, with your home, you’re going to have to pay for someone to take care of things like broken air conditioners or landscape your lawn.
If you feel that that the pros outweigh the cons, here are a few ways that you can get help for buying a home on low income:
1. HUD Housing-HUD housing is considerably more affordable than buying from a home that is privately owned. This is appealing to many people who are looking to invest in a home on low income. The biggest thing to consider is that these properties are not always in the best condition or may need repairs.
2. Apply for FHA Loan-As someone with a low income, it may not be easy to walk into any bank and ask for a loan but with the FHA loan, the government is insured against default, which helps most lenders lower qualification standards.
3. State and City Housing Programs-If you have a public housing department in our city or state, there may be programs designed to help low-income individuals and families with inspection costs, down-payment, and more.
4. Options for veterans, law enforcement, and military-If this describes you, there are various options available for people in certain fields through incentives offered by the government.
At the end of the day, you know what’s best for you and your little ones. If buying a home is the best option for your family, start saving for your down-payment today. Budget and build up your credit as well. Speak to a lender for insight. Buying a home can be a scary decision but when it’s right for you, it’s worth it.