Know 3 Types of Mortgage Loans for Low Income Families
Mortgage loans for low income bad credit can be secured through direct and indirect lending methods. We offer help to get approved for 3 major types of home refinancing programs. Below is some vital information relating to the same:
- Mortgage Insurance - When federal government, Fannie Mae or Freddie Mac insure mortgages offered by private lenders, it becomes easy for borrowers to get approved even if their incomes are low. FHA, VA and HARP loans are classic examples of this program types.
- Direct Lending - In few cases, the federal government directly provides refinance home loans to homeowners in some select areas despite their having lower incomes. There is no need to go to private loan dealers in such situations. USDA loans are an example.
- Grant Programs - In this type of a refinance mortgage program, homeowners receive monetary grants from government or some non-profit agency. People who have lower incomes can qualify for such type of a home refinance loan and save money by reducing their payments.
Your Options on Refinance Mortgage Loans for Bad Credit and Low Income
There could be an array of programs for getting low income refinance mortgage. You only must have some idea regarding them before you actually start researching your options online.
- USDA Loans – USDA mortgage programs are popular because of the fact that they do not require applicants to pay down payments. Besides, mortgage insurance requirements for USDA loans are less stringent than FHA loans. Only homeowners residing in rural or suburban neighbourhoods could be eligible for receiving benefits of USDA home loans.
- FHA Loans – FHA streamline refinance mortgage loans have the lowest interest rates and even the credit criteria are relaxed. Therefore, if your original mortgage is a FHA home loan then you need not worry about the status of your credit profile.
- VA Loans – VA loans are specially designed home refinance program for members of the United States military. These loans do not need any down payments or mortgage insurance and so are easier to get approved for than conventional refinance mortgage loan types.
- “Good Neighbour Next Door” Loans – This type of refinancing home mortgages are available for government employees such as teachers, law enforcement officers, emergency medical technicians and fire fighters. The HUD, which oversees the FHA operations, may even provide its some of its owned properties at a 50% discount to buyers.
- Down Payment Assistance Programs – Many of you might not be aware that almost 87% of the homeowners across the United States have the chance to qualify for down payment assistance from states, cities or other nationwide non-profit organizations. These grants need not be repaid.