My answer to How could someone purchase a home if they had very low income? Let’s say they are earning under 20k pe…
Answer by Joy A. Adams:
This income is barely above the poverty level. Most lenders would not qualify you for a mortgage base on this income. If you have a strong credit score and a 20% down payment they might ask for a cosigner or a guarantor.
I don’t know if you have any debt or what your living expenses are but lenders would also look at your debt-to-income ratio to make sure that your income can carry the mortgage.
Unless you have an inheritance that you have not mentioned, I would put homeownership on hold just a bit longer until your income level can qualify you for a mortgage. I know there are creative mortgage and real estate ‘professionals’ out there who might be able to help you quality for a mortgage. I would not suggest for you to go this route. I have seen too many casualties – families struggling to pay their mortgages and eventually are forced into foreclosure.
What you can do in the meantime is to do some homework on homeownership. Banks and real estate agencies sometimes offer free workshops and seminars to potential first time homeowners. This is a good place to start your journey.
I hope this was helpful. All the best to you.