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Buying a House with Low Income? Try this!

Buying a House with Low Income? Try this!

Whether you’re a first time home buyer or not, buying a house with low income is possible. As affordable housing becomes more expensive and more difficult to find, many low-income Americans are searching for ways to buy their own home. As Low Income Relief reader Star pointed out, “Most (homes) are cheaper than rent!!! My rent is $945. The house I want would be around $700 including insurance.”

Personally, I had the same experience. I was renting a much smaller house for several hundred dollars more per month than I am now paying for my mortgage (including taxes and insurance)!

How to Buy a House with Low Income

It’s important to familiarize yourself with all the options available to you when you’re buying a house with low income. There are many different loan types. Although the standard loan type is known as a “conventional loan,” there are many alternatives that make it easier for low-income home buyers to succeed in their first home purchase.

Department of Veterans Affairs (VA) provides mortgage insurance on loans obtained by current and former military members. You can get a VA loan with imperfect credit, no down payment and more! Click here to find out if a VA loan is right for you. 

Dollar Homes are something that many buyers get excited about. These homes are owned by the FHA because the previous owner failed to make payments. As a result, the homes were foreclosed and are now available for very low prices. Learn more about this strange program here.

Federal Housing Administration (FHA) provides mortgage insurance on loans throughout the United States and its territories. You can qualify for an FHA loan with credit scores as low as 500 – and there’s no minimum income requirement! Click here to find out if a FHA loan is right for you.

Eagle Home Mortgage offers a specialized mortgage product that can give home buyers with student loan debt up to $13,000 to help pay off their student loans. Find out what the catch is here.

Good Neighbor Next Door can give qualifying buyers a 50% discount on their homes. That’s HALF OFF the biggest purchase most people make in their lives! Find out who qualifies and what you need to do to get this deal here. 

Habitat for Humanity offers low down payments and affordable monthly mortgage payments. You’ll even have the chance to help build your own home! Find out how to get an affordable home from Habitat for Humanity here.

Home Possible is a Freddie Mac mortgage program with low down payments, cancellable mortgage insurance and other benefits. It’s designed for low income home buyers but lacks some of the flexibility of the HomeReady program. We’ll show you the differences.

HomeReady is a Fannie Mae mortgage program with low down payments, cancellable mortgage insurance and low credit requirements. It’s designed exclusively for low income home buyers. Get the details on this great mortgage program now!

Section 184 Indian Home Loan Guarantee Program provides special home loan guarantees for American Indian and Alaska Native families, villages, tribes or tribal-designated housing entities. Since 1992, they’ve guaranteed over $5 billion in loans! Find out how to get your loan guaranteed! 

United States Department of Agriculture and Rural Development (USDA) offers three excellent programs that help low to moderate income earners purchase, build and repair homes in rural areas. They offer a loan guarantee program, a direct loan program and a home repair program. Get the details on all three programs right here!

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Down Payment Assistance Programs

Loftium is no longer accepting down payment assistance applications, according to the representative I spoke to in March 2019.

National Homebuyers Fund provides down payment assistance. These grants do not have to be repaid and can be up to 5 percent of your total mortgage amount. Find out about their two down payment assistance programs here!

NeighborhoodLIFT is a national down payment assistance program that is available in specific cities and areas in the United States. You could receive up to $20,000 toward your down payment from this program!

PenFed Foundation Dream Makers Program provides a two-for-one matching grant. This can provide up to $5,000 toward your down payment and the grant does not have to be repaid!

To qualify, you’ll need to provide at least $500 toward your down payment and you must have an income that does not exceed 80% of the area median income (AMI) where the home is located.

You may be able to find other down payment assistance programs at

Mortgage Payment Assistance Programs

Section 8 Vouchers can be used toward mortgage payments in some areas! This program varies by region and you’ll want to contact your local Public Housing Authority (PHA) for details. Learn more about this exciting program here!

Homebuyer Education Courses

CreditSmart is a free online homebuyer course offered by Freddie Mac. The course will help you understand credit, money management, lenders, home ownership and managing your investment. You’ll be able to print your certificate of completion as soon as you have finished the course. Unfortunately, this program is only available in English.

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State-Specific Programs

As always, some of the best assistance programs exist on a local level and are limited to residents of a certain area. Here are some helpful programs we’ve found in various states. If you know of a program we’ve missed, please let us know in the comments!




























New Hampshire

New Jersey

New Mexico

New York


North Carolina

North Dakota





Rhode Island

South Carolina

South Dakota







Washington, D.C.

West Virginia



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Nicole is the founder and lead researcher of Low Income Relief. After a personal experience with poverty and homelessness following her husband's sudden medical discharge from the U.S. Army, Nicole discovered the life-changing impact of community resources. This experience ignited her passion for empowering others to navigate similar crises. Nicole launched her writing career at age 16, working for various newspapers and publications. Her commitment to in-depth research and accessible content has been recognized by Google for Publishers and other industry leaders. For over 20 years, she has applied her investigative skills to uncover the most helpful, up-to-date information on benefits programs and community resources, ensuring Low Income Relief maintains the most extensive resource databases available.

Carmen Serrano

Thursday 9th of March 2023

Hello my name is Carmen I am a Foster parent/Caregiver I am raising 5 grandchildren which two are adopted and other three I have full custody plus one child of my own. I was told by other coworkers about a program called homes for partnership and how I would be able to own my own home? My one dream is to be able to buy a house for my children and if anything was to ever happen to me at least I know I accomplished something in life by leaving a home for my kids. I would like to know how where or what do I do to go about this program?

Catherine Marucci

Friday 10th of March 2023

Hi Carmen. Could they have been referring to the HOME Investment Partnerships Program?


Friday 3rd of February 2023

I am 60 years old raising 3 grandkids with mental health issues. The house we live in is being sold. I am unable to work due to raising the children. Is there a grant out there to help me?

Catherine Marucci

Saturday 4th of February 2023

Hi Barb. Have you tried applying for Section 8?


Tuesday 3rd of August 2021

HUD has told me that the new 2021 stimulus funds add the following to these programs, soon, all of which I can use: $75 billion for green improvements to subsidized and unsubsidized affordable housing, $150 billion for Housing Choice Vouchers, $45 billion for the Housing Trust Fund (HTF), $35 billion for the HOME Investment Partnership Program, $15 billion for the Community Development Block Grant (CDBG) to fund affordable housing, $12.5 billion for the Capital Magnet Fund (CMF), $7.5 billion for Section 202 supportive housing for the elderly, $5 billion for new U.S. Department of Agriculture (USDA) financed rural housing, $2.5 billion for Section 811 supportive housing for persons with disabilities, $2 billion for HUD Native American housing assistance, $500 million to rehabilitate existing USDA rural housing. Call your elected officials and make sure they put money into: - USDA Loans - FHA Loans - Conventional 97 Loan - HUD Home Ownership Voucher - 203k Section Loans - FHA Energy Efficient Mortgage (EEM) - HomeReady Loans - Section 502 Direct Loan Program - Home Possible Loans - HomePath ReadyBuyer Loans - Freddie Mac HomeOne loans - First-Time Homebuyer Tax Credit - Chenoa Fund with the FHA Program - Chenoa Fund with the HomeReady Program - HUD Dollar Home Program - CalHome Program - The Downpayment Toward Equity Act of 2021 - Zero Down Payment funds - $20,000.00 down payment grants - Section 202 and Section 811 Programs for the Elderly or Persons with Disabilities

Those will help every qualified low income person get a home.

Linden H.

Monday 10th of May 2021

I just looked at the CreditSmart course, and it says you can toggle between English and Spanish! :D


Monday 13th of March 2023

@Linden H.,

The link to CreditSmart course is not working