Mammoth AwardsWhat do many people do as soon as they win the lottery? They buy a house to stop throwing away money on rent and finally have a roof over their heads that they can call their own.
Does this mean you’ll need to win the lottery to do the same? Not at all. In fact, thanks to programs from the Department of Housing and Urban Development, you can buy a home with little savings and a low income. Let’s take a look at some of those programs now.
Homeownership Voucher Program
If you want proof that you can even live in public housing and soon own a home, look no further than the Homeownership Voucher Program. If it sounds similar to the HUD’s Housing Choice Voucher Program or Section 8, the money-saving concept is the same. But instead of helping you pay the rent, a voucher, in this case, will help you pay some of your mortgage and other housing costs.
FHA Loans
Have you been rejected for a home loan before? If so, look into an FHA loan from the Federal Housing Administration. It may give you the financing you need if your credit score is low and you don’t have significant savings for a down payment or closing costs.
HUD Homes
Did you know that the HUD buys homes? It does whenever a person defaults on an FHA loan. By paying the remainder of the loan, the HUD takes ownership of that property.
Once complete, the property becomes a HUD home.
Instead of sitting on the home as an investment, the HUD puts it on the market at a low price.
This alone makes owning a home more affordable, but HUD homes can also feature low down payments and inexpensive closing costs through some of the programs we’re about to discuss.
One Dollar Program
Imagine being able to buy a home for $1. If it sounds too good to be true, know that it’s an actual HUD program.
If you qualify as a family with low or moderate income, you could buy a HUD home for $1, provided it’s been on the market for at least six months.
HUD $100 Down Program
Expensive down payments are major obstacles for many aspiring homeowners. With this program, you could end up with a down payment of only $100, which is a far cry from 3.5 percent or more of the purchase price that’s usually required.
Non-Profit Program
Non-profit organizations sometimes buy HUD homes at a 30 percent discount under this program. This allows them to repair the homes and sell them at an affordable price to families in need.
Good Neighbor Next Door Program
Would you like to buy a home at a 50 percent discount? Through this program, it’s a possibility if you are a teacher, firefighter, police officer, or some other form of a public servant.
