There are several ways to qualify to buy a home beyond making a million dollars and / or getting a big fat gift from your mom or dad (although both those things will help, immensely).
Here’s a great little blog entry from someone, about how she got a loan (I did a minor edit), courtesy of the Lifehacker.com website:
Prepare to purchase a home
In a recent email newsletter, real estate broker Cynthia Kern offered some practical, no-nonsense tips for folks interested in buying a home but not sure where to start. While Kern is based in New York, her advice applies beyond the bounds of the Empire State.
With permission, Iâ€™m reprinting an excerpt here.
Cynthia writes, â€œSeveral folks have asked me recently what they need to do to get ready to purchase an apartment â€¦ First, do NOT go look at condos. FIRST you should go to a mortgage broker, specifically ACORN Housing if your total combined household income is around $75,000 or below.â€?
â€œYou can call ACORN to confirm the income limit. If you can go to them, do it NOW. Seriously. If you have any desire to buy a place anywhere in the country at any point in your life, they can help you NOW. After you attend two housing seminars, theyâ€™ll pair you up with a loan counselor who will go through your income, assets, debts, and credit. Theyâ€™ll then tell you how much apartment and mortgage you can afford now, or what you need to do to make yourself more attractive to a bank. Theyâ€™ll help you get on a budget, so you can be on a six-month, one-year, or five-year plan to be ready to purchase. A regular mortgage broker can do the same thing. Youâ€™ll just end up paying them some fee or commission. … (more)
And, here’s all about ACORN. This non-profit helps people get prepared to buy a home. I think they offer up good advice.
ACORN Housing is a national non-profit organization that has provided free housing counseling and helped over 50,000 low and moderate income homebuyers since 1987. ACORN Housing provides one-on-one mortgage loan counseling, first-time homebuyer classes, and helps clients obtain affordable mortgages through our unique lending partnerships.
By joining AHC (ACORN Housing Corporation) you receive:
* Lower down payments and closing costs.
* No Private Mortgage Insurance.
* Banks generally require 3 months of mortgage payments in the bank at settlement.
* With our program, they don’t, which allows you to buy a home sooner.
* Most banks won’t count public assistance or voluntarily child support in determining if you’ll qualify for a mortgage.
* With our program, all steady income counts.
More information: ACORN: Housing Services