Income Vs Affordability

Income Vs Affordability

Buying a house seems a farfetched dream for those who earn a low income and thus they give up on the idea of having a space of their own that they can call home. However, with the present policies and programs there are ways available through which an individual can invest in a house.

Lets us look at the options one has which make buying a house possible.

It is important to compare your costs of continuing to rent to the costs of homeownership in your area.Contact your local public housing agency (PHA) and ask about HUD’s Homeownership Voucher program. An offshoot of the Section 8 rental assistance plan, homeownership vouchers allow eligible low-income households to use their HUD subsidy, generally used to pay a portion of their rent, to make a monthly mortgage payment. Low-income earners can be flexible on where they may start looking for homes to buy. The town or city just across the county line may have better home values and prices from which to choose.

The next on the list is a good credit report. The credit score is an important factor in the lending process. Today, credit is used for borrowing, employment, insurance pricing and utility deposits. Scores range from 300 to 850; the higher your score, the more opportunities are available.

Setting yourself on a budget will ease your task. By living within a budget, you can determine how large a monthly payment is best for your lifestyle. Begin by using your current rent payment in the budget and then set aside the largest amount possible for a few months to see if you can manage a higher monthly expense. This will also help you put money aside for the down payment and closing costs. Sticking to a budget is one of the best ways to reduce expenses and increase savings, both of which will help build a down payment for your home.

With the above points, you can make allowances to achieve your wish or a necessity of buying a house. When you take these steps before you even begin looking for a home, the process is much smoother. You can then start your search with higher confidence that you will be able to follow through on the purchase when you find a home you like.

Hope you find your home soon.

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