If you DREAM of being a HomeOwner: BUY a House. Do so by exercising Wisdom and your relationship with your Banker/Lender--Realtor and HOUSING Counselor services. OWNERSHIP at a FIXED Rate will keep you from being subject to Rent Increases , your "Savings" invested in PROPERTY can accrue into EQUITY...Your House Payment should Not be over 40% of your Monthly Income..45% IF YOU NO LONGER WORK. You should create a Realistic Monthly Budget--wherein you are able to put away savings of roughly 7 to 10% for household repair/maintenace & upkeep...If you're considering a CONDO, these charges are sometimes provided in the Homeowner Association Dues. Are you in a position to generate more income? How's your health? THOSE concerns will be coming up as you progress in age--the Equity you build in your "home" may be able to result in a reverse mortgage in 10 years. Pursue your life from a position of Strength and Hopefulness rather than be stiffled by Fear and Timidity. Do your Research, contact City Clerks for Housing information that caters to Seniors; low-income; fixed-income purchasers. The Local Librarian may be able to direct you. Most cities require building developers to include Below-Market-Rate Housing and you very well may Qualify. Contact
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.