Are you credit constraint and going through stress and financial crisis due to your low income? If you belong from a low income family, it is pretty difficult to have adequate money for down payment and apply for loans for purchasing a house.
But there are reasons for you to smile. There are several rent to own programs for low income families provided by the local as well as the federal agencies. Contact your local housing authority and get information on the rent to own programs for low income families.
The first thing that must be considered is whether or not you fall in the category of the low income families and eligible for the low income housing. It is advantageous for you if you had a good relationship with your previous landlords.
Moreover you have to be very particular that you are applying for a house on rent based on your income capability. The Housing and Urban Development’s Public Housing program allows you to reside in an affordable as well as decent housing.
This program benefits the low income families because 30% of your total income is required for paying the rental while the rest is paid by the Housing and Urban Development department. You have to meet the income limit for availing this program.
There is yet another program similar to public housing. It is called the Section 8 Housing Choice Voucher. In this program too you have to pay 30% of your income towards the rent but stay in any of the rental housing till the voucher gets accepted. But if the owner feels like he might even decline the voucher.
If you are a Section 8 Voucher holder with the help of the Homeownership Voucher program you can pay the mortgage using the housing subsidy. This is ideal for first time home buyers or for those who haven’t bought a home in the past 3 years. You need to have a steady income and job for at least a year to qualify for the loan. Moreover you are also required to participate in the homeownership seminars.
The rent to own programs that are specifically designed for the low income families are dedicated to the establishment of decent and affordable housing as well as rental assistance, programs and services. It gives you the opportunity to have a decent life and secure place to reside even when you have a low income.