Government Housing Grants
Very Low Rates and Easy Approvals Get Approved Right Now, No Fees
1Contact your local public housing agency (PHA) and ask about HUD's Homeownership Voucher program. An offshoot of the Section 8 rental assistance plan, homeownership vouchers allow eligible low-income households to use their HUD subsidy, generally used to pay a portion of their rent, to make a monthly mortgage payment. Not all PHAs participate. The San Francisco Housing Authority processed just two homeownership vouchers between 2004 and August 19, 2010, according to HUD data.
2Ask your real estate agent about buying a HUD home. While HUD homes are generally offered at market-rate prices, you may qualify for a considerable subsidy if you are a teacher, firefighter, police officer or EMT. Through HUD's Good Neighbor Next Door program, the above-mentioned borrowers can secure a HUD home in a federally-designated revitalization area at a 50-percent discount.
3Consult a lender who offers FHA-insured loans. While FHA products do not use low-income requirements, they do offer a more liberal underwriting process relative to conventional loans. For instance, as the Bankrate website points out, traditional loans typically allow borrowers to commit no more than 36 percent of their income to debt, including housing costs. According to HUD, FHA lenders can accept debt-to-income ratios as high as 41 percent, effectively increasing how far you can stretch your income.
4Inquire with your lender or real estate agent about state homeownership subsidies. In California, for example, the Housing Finance Agency provides several programs to homeowners who fall below county-based income caps. The Cal30 first mortgage program offers 95-percent financing--which means you only have to come up with a 5-percent down payment--and a fixed interest rate to first-time homebuyers. To qualify in San Francisco, for instance, a two-person household can earn no more than $92,900, as of the last update of the income limits in June 2009. This number drops considerably in less affluent counties, such as Fresno, where the threshold is $53,500.
5Consult your bank, credit union or broker about local government initiatives for first-time or low-income homeowners. The San Francisco Mayor's Office of Housing, for example, promotes several programs, including loan assistance for first-time buyers and below-market-rate (BMR) ownership opportunities. San Francisco restricts sales prices on BMR properties and offers them exclusively to low-to-moderate income households.
I must say I am shocked by most of the replies to your query. I suspect some of those answers may be prejudiced because you mentioned your age. LAST TIME I CHECKED IT IS ILLEGAL TO DISCRIMINATE BASED ON AGE!
A rough calculation of numbers looks like a mortgage payment would be roughly 50% of your monthly gross income. (I don't know local property tax rates or local Homeowner's insurance rates, so I made an educated guess) Based on guidelines, that's a steep number. That having been said, what's the local going rate for rent? If a mortgage payment is going to be roughly $700 (including taxes and insurance, principal and interest), then compare that to local rents.
Here's a website where you can find an excellent budget-calculator for determining affordability of a mortgage: http://www.consumer-action.org/
Also, Meet with a Local Mortgage Banker to get prequalified for mortgage financing. The Mortgage Banker will review all facets of your loan request to answer your questions with regards to the types of loans and maximum loan amounts you could qualify for. Your Mortgage Banker will also review and counsel you on monthly payments, including a much more accurate estimate for property taxes and homeowner's insurance.
Houses and "previously owned motor vechiles" are subject to Murphy's Law. Out of the blue a hot water heater will fail, your furnace, the celler will flood. the roof will leak, old electrical wiring will fail. Moisture will warp door frames, the toilet will overflow, heavy winter ice will break gutters etc etc. Unless your favorite shopping venue is Home Depot and your lover is handy....you have no business owning a home.
Many "repair" people will see you as a easy mark and easy money. Stick to canvas and tiny tubes of paint.