Home Buying Questions: Low-Income Home Buying Programs

Continuing our list of questions to ask when buying a home, we come to another common question among home buyers:

"What are low-income home buying programs?"

In general terms, a low-income home buying program is any program designed to assist home buyers who may not otherwise qualify for a mortgage loan.

Normally, when you talk about low-income home buying program, you're talking about programs that have some form of government backing. In other words, the government backs or guarantees a loan on behalf of the home buyer.

Low-income home buying programs work by making mortgage lenders more inclined to loan money to a borrower who might not otherwise be qualified for the loan. The lender is comfortable doing this, because in the event that the borrower / home buyer defaults on the loan, the government has backed it. So the lender will be taken care of either way.

Learn More
We have a helpful tutorial on the subject of low-income home buying programs.

Happy home buying!

~Brandon