Are you low income but still a homeowner- how did you do it?

[BizrulesSD]

Check with your local housing commission. There are a ton of programs to encourage low income home ownership. My wife and I purchased our first place (still in it) leveraging 3 different programs.

1) Down payment assistance - They provide a part of the down payment and we only had to come up with 3%

2) Closing cost grant - 15K towards closing costs which we don't have to payback if we stay in the place over 6 years.

3) Mortgage Credit Certificate - Changes a percentage of the interest paid into a tax credit versus a deduction.

[LifeIsGood01]

Originally Posted by Mattks

. Most people could afford a home if they want one

That's true. In many places it's cheaper to buy a home than to pay rent with interest rates being so low. As long as you can come down with 3% down and instead of offering less for the home ask for 6% concessions towards closing costs you can buy a home. Your mortgage won't go up, your rent will.

[Nov3]

Originally Posted by LifeIsGood01

That's true. In many places it's cheaper to buy a home than to pay rent with interest rates being so low. As long as you can come down with 3% down and instead of offering less for the home ask for 6% concessions towards closing costs you can buy a home. Your mortgage won't go up, your rent will.

Pretty sure:
taxes go up
water bill/sewer go up
insurance goes up
and repair prices go up.

[North Beach Person]

Originally Posted by Nov3

Pretty sure:
taxes go up
water bill/sewer go up
insurance goes up
and repair prices go up.

And so does rent. A house payment (without tax and insurance escrow) stays the same through the life of the (conventional) loan.


If you don't think renters pay the items you listed in their rent when they go up you should sit down and think about businesses and fixed costs.

[Eeko156]

I agree with the others - in most places, it is cheaper to buy than to rent. The problem many lower income people face is the down payment issue, not the actual monthly payment.


Also, many rentals charge water, trash and sewer. Most charge pet rent now if you have pets.