For many people, purchasing a home is a major financial step. Unfortunately, there are quite a few people out there who maintain a good credit score, have regular work and plenty of family support but who, nonetheless, might feel that financing a home is just not an option for them because their income is lower than lenders require.


If this sounds like you, and you’re ready to take that next step toward financial success, read on, because there’s good news.


There Are Good Options for Low- and Moderate-Income Buyers


HomeReady is a program from Fannie Mae that’s designed for borrowers who might not have the income that most lenders would like to see before funding a house. These loans aren’t the undesirable, high-interest mortgages that got so many people into trouble during the Great Recession. These loans simply consider the fact that many low- and moderate-income borrowers have a solid financial foundation on which to borrow, but that their incomes and resources need to be assessed a bit differently to reveal all that they have to offer.


As an example of how this works, HomeReady loans take into account income from household members other than the borrower. This allows underwriters to be more flexible with their funding. Importantly for the buyer, it presents a more realistic picture of their income. When assessing your eligibility for the loan, the underwriter is even free to take into account non-occupant borrowers. If you’re getting help from your parents or another family member, that can make a significant difference in qualifying for the loan.


Don’t Be Intimidated by Financing


For many working people who don’t have high incomes, the down payments on homes can make owning one seem like a pipe dream. With the HomeReady mortgage, however, lenders can take into account many different sources of cash for the down payment, including community grants, gifts and cash on hand. These resources can even be calculated into the closing costs.


How to Get Started


Start by us. We are experienced with the entire home buying process and, when you get an idea of what price range is likely to work for you, they can help you find lenders that might provide financing under the HomeReady program or another for which you might qualify.


Even if you have a low income, don’t think that means you cannot purchase a home. There are good options out there!