Just because you may fall into a low income bracket, does not mean you will not get approved for a mortgage! Do not make any assumptions when it comes to this. Your income is only one part of qualifying for a mortgage – not all of it. And it certainly is not the most important qualifier for a mortgage! What truly matters most is your future mortgage payments and if you can afford them. Your debt-to-income ratio is what is much more important. If your debt-to-income ratio is low, you will likely qualify for many different loans as the person will likely be able to make their mortgage payments.
Would you believe that there really is no minimum income for any mortgage? Again, if someones debt-to-income ratio is low and both down payment and closing costs can be met, someone would not be denied a mortgage if their income was low…even as low as $10,000 per year! We hope that this is giving you hope if you thought the likelihood of you getting a loan due to low income was low…it is not!
There are many options available for people into this type of category. These loan types and programs may not be well known or conventional, but there are many programs out there! For example, there is a program available to help law enforcement, teachers, firefighters, and emergency medical technicians! This program is called the Good Neighbor Next Door and is not widely known. This is just another example of making sure you look into all possible programs and resources available! There are even some assistance programs out there that will help someone with their down payment.
If you are still unsure if you will get approved and you want a peace of mind, get pre-approved for a mortgage! This will give you a price range on a house you can purchase. If you need help researching available options for you, please reach out. We would be thrilled to help!