For many of us, the American dream often seems out of reach. Of course, the definition of what the American dream actually is differs from person to person, but it usually included home ownership for most people. Owning a home is possible for many people who think it is not possible. While things are changing rapidly in the mortgage industry because of the recent fiasco, some things are changing for the positive. In an attempt to rejuvenate the real estate industry and the economy as a whole, low income home buying programs are becoming more readily available to those who qualify.
The following organizations are the ones that are responsible for providing low income home buying programs. Research each to see if you qualify for any of the programs.
1) Fannie Mae. This is the Federal National Mortgage Association. This organization was formed by Congress decades ago and its sole purpose is to help middle to lower class Americans realize the dream of home ownership. There are several ways in which they do this. See their website for more information.
2) Freddie Mac. This is the Federal Home Loan Mortgage Corporation. Also started by Congress, they deal with Wall Street to help provide affordable home loans to Americans. See their website for more info.
3) The FHA. This is the Federal Housing Authority and they will insure loans. They help secure the loan for the lender and ensure that it will be payed back.
4) The RHA. This is the Rural Housing Authority. They will actually make direct loans to home buyers. They mostly work with agricultural land and people who are looking to farm the land they buy.
5) The VA. This is the Veteran’s Administration. They work with American veterans and help to insure loans from private mortgage lenders.
6) State programs. There are many state programs available to first time home buyers. Contact your local state housing department for information on the programs available.
There are also some great websites online to help middle class and lower class first time home buyers secure home loans. The Online Home Loan Directory is one of them. It’s a free online resource helping borrowers make the best decision for their specific situation.
