I want to buy a house?

Question

I am a married 22 yr old with 4 kids we are considered low income, but i want to buy a house i have no money for down payment is it possible for me to buy a house and not be rejected or turned down?

Answer 1

You have three options.

Habitat for humanity.  The income requirements must be low!    Habitat only makes you pay for the building supplies, not the labor since it's all volunteer.  So, you  might have to pay 255.00 for a mortgage!

They will have you attend a meeting where you learn about it, then they take your application and decide if you're eligible.

It's worth a try.

Second, if you have NO money to put down, try the USDA Rural Development housing program.  The benefits to this program are astounding.   You're darn lucky if you get it too.

It's based on income and how many live in your home.

They send you a packet of info, and you meet with a loan officer.  It can take a while, like several months, so I would get on the ball with it.  

The website is below.

Find your state and county then call them.  They'll send you applications and tons of paperwork.  

http://www.rurdev.usda.gov/rhs/

How it works if you're approved.

They will give you a housing limit based on the county you live in.  Lets say it;s 150,000 for a home.

You pay only 24% of your gross income, but they pay the rest!

So, if the house payment on that 150k is going to be 900.00, and you only make 20k per year.

Then the part you pay is

20k/12=1666

1666x.24= 399.00

Yep, they pay the other 501.00

There's a catch.  If you sell the house, you must repay a percentage of the part they paid for you.

If you plan on staying in it for a long time, then it's worth it!

By the way, the interest rate is only 5.735

Better than any mortgage you can possibly get.

Third, there is the FHA loan.  You must have 3% down though.  This could be doable if you found a cheap house!

Keep in mind one very important thing.  Your credit reports must be clean of any negatives for all three options.

If you have negs, now is the time to start working on it before you apply.

Good luck to you.

Answer 2

Sorry no.  The best mortgage that you could get would be a FHA loan, but you will need 3% of the purchase in your own money.  You must have good credit.  Start saving now and pay all your bills on time.  Then you will be able to buy a house.

Answer 3

Your chances are weak unless you can find something along the lines of a Habitat for Humanity House or similar, where there are substantial grants to get you started toward ownership.

Answer 4

First of all, kudos for asking this question and for having the ambition to own a house.  Unfortunately, there are lots of 22 year olds who have 0 kids who cannot afford to buy a house.  With 4 kids, you will have an even tougher time.  Kids are expensive, 4 is enough for now.  It will probably take you a few years, but you should start saving money, even a few dollars a week.  Also, make sure you keep your credit in order, pay all of your bills on time.  Home ownership is expensive, you should try to "get handy", learn how to do small repairs around your rented house.  Look inside your toilet tank to see what is going on, so you won't have to hire a plumber for small repairs, you can do it yourself.  Maybe your landlord will give you a break on your rent if you do small repairs in his units.  For example, if he has someone move out, then maybe you can paint the unit before the next tenant moves in.  Then put the extra money in savings.  Maybe you can earn some extra money doing babysitting in the neighbourhood, then put the money in savings.  Good luck.