How Can People With Low Income Qualify for a Mortgage?

Written by lauren treadwell | 13/05/2017
How Can People With Low Income Qualify for a Mortgage?
Low-income people can buy a house without it being a burden. (Letras hipoteca1 image by Nuka from

You do not have to have a lot of money to buy a house. Even low-income people can become homeowners if they keep their expectations realistic and shop around for the best financing available.

The Facts

People with low income can qualify for a mortgage by knowing how much house they can afford, having good credit and saving for a down payment. Many low-income borrowers who don't have good credit or a down payment rely on government backed loan programs from the Federal Housing Administration (FHA), Fannie Mae and Freddie Mac that make qualification easier.


Low-income borrowers have a few mortgage options available to them. Conventional loans have a set interest rate and the payments stay the same throughout the life of the loan. Adjustable rate mortgages usually have a low initial interest rate that can help low-income borrowers afford more house. However, the rate will increase after a certain period. Likewise, interest-only loans allow low-income borrowers to forgo paying on the loan principal and only make payments on the interest for a set number of years. When that period ends, the borrower will have to start paying off the principal as well as the interest.


People with low income may find themselves in trouble if they buy more house than they can afford. This is especially true if the borrower has an adjustable rate mortgage or interest-only loan that increases the payments after a certain period.

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