If your income is low and you are considering purchasing a home
You should consider doing two things:
1. Opening an Individual Development Account (IDA)
This saving account can help you with a down payment on the purchase of your home. It can operate as a down payment assistance. Click here to learn more about this program for low income families.
2. Taking a Financial Literacy Workshop
You can take these either online or in person. click here for online workshops
3. Seeking pre-home buying counseling.
The best way to prepare for homeownership is to go through a process called pre-home buying counseling. This most often is offered by non-profits housing agencies and sometimes churches and CDC's (Community Development Corporations).
Here’s How Pre-Home Buying Counseling Works.
Step 1: Make appointment with a housing agency.
You can go the www.hud.gov website to find an agency in your area.
Step 2: Go for first consultation
Step 3: Talk to housing counselor
Step 4: Take the following paperwork with you to your first consultation unless instructed to do otherwise
- copy of all 3 of your credit reports
- something that can verify your employment status
- most recent income tax forms
Step 5: Fill out client information form
Step 6: Fill out an evaluation form (attach the above paperwork to this form).
Step 7: Housing Counselor gathers information from the evaluation form and place you on a housing plan.
Step 8: Arrange another consultation
Step 10: Counselor discusses plan with you and give recommendations on such things as your credit reports, your debt, budget, your finances, your income, and your career path.
Counselors recommend client enroll in a pre-home buying workshop.
Topics at the workshops usually includes:
- Your readiness for homeownership
When you finish your workshop you will be better prepared to purchase a home than ever before.
Continue here to learn about low income mortgages
