Qualifying For a Loan on a Single Income

With home prices as high as they are, qualifying for a loan becomes more difficult. This is especially true if your household is single-income. But that doesn’t mean it’s impossible. There are options available for low-income households.

As always, it’s important to check your credit score before attempting to get a loan. You can check it for free once per year from any major credit bureau. If your credit looks good enough to qualify for a loan, you can advance to searching for loans. For low-income households, the best place to look is government loans, since these usually have lower thresholds for down payments. Some FHA loans require only 3.5% down. Your specific region may also have government loan programs. If your credit score is low, however, consider looking for a co-signer for your loans. The co-signer doesn’t necessarily need to be the one paying, but if their credit score is better than yours, it will help improve your chances of loan approval and possibly even get you a lower interest rate on the loan.

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