{"id":104000,"date":"2026-02-25T08:43:37","date_gmt":"2026-02-25T16:43:37","guid":{"rendered":"https:\/\/www.redfin.com\/blog\/?p=104000"},"modified":"2026-02-25T08:44:50","modified_gmt":"2026-02-25T16:44:50","slug":"buying-a-house-with-low-income","status":"publish","type":"post","link":"https:\/\/www.redfin.com\/blog\/buying-a-house-with-low-income\/","title":{"rendered":"How to Buy a House with Low Income Even If You Have Little Savings"},"content":{"rendered":"

If you\u2019re wondering how to buy a house with low income, you\u2019re not alone. Many buyers assume homeownership is out of reach if they earn less than the area\u2019s median income \u2014 but that\u2019s not always true.<\/span><\/p>\n

Buying a home with a low income is possible. The key is understanding which <\/span>loan programs<\/span><\/a> are designed for lower-income borrowers, <\/span>how lenders evaluate affordability<\/span><\/a>, and what steps can improve your approval odds.<\/span><\/p>\n

From FHA and USDA loans to down payment assistance programs, there are real pathways to homeownership \u2014 even if you have little savings.<\/span><\/p>\n

Can I buy a house with low income?\u00a0<\/span><\/h2>\n

Yes, you may be able to buy a house with low income. Low income is generally defined as being below a specific threshold of the area\u2019s median income (AMI), which can vary by location and household size<\/span><\/p>\n

Each loan option we\u2019ll discuss has qualification requirements for AMI, as well as other factors like credit score and<\/span> debt-to-income ratio (DTI)<\/span><\/a>.\u00a0<\/span><\/p>\n

If you meet the specific program requirements and can reasonably afford the mortgage, taxes, and other monthly costs, you may still qualify for a mortgage.<\/span><\/p>\n

How to buy a house with low income<\/span><\/h2>\n

There are a few things you can do on your own to improve your chances of qualifying for a loan and buying a house with low income:<\/span><\/p>\n

1. Improve your credit score<\/span><\/h3>\n

A higher credit score makes you more likely to get favorable loan terms from a<\/span> lender<\/span><\/a>. Make payments on time, avoid opening new lines of credit, and pay down debts to improve your score.\u00a0<\/span><\/p>\n

2. Do some financial planning<\/span><\/h3>\n

Know<\/span> how much you can afford<\/span><\/a> with your current budget. Be aware of your current DTI, credit score, and down payment savings amount when you speak to a lender so they can help direct you to the best loan option.\u00a0<\/span><\/p>\n

3. Save for a down payment<\/span><\/h3>\n

Not all loans for low-income buyers require large down payments, but the more you\u2019re able to save, the better. A bigger down payment can save you from paying for<\/span> private mortgage insurance (PMI)<\/span><\/a> on conventional loans.\u00a0<\/span><\/p>\n

4. Pay down debts<\/span><\/h3>\n

Reducing your debts can both increase your credit score and lower your DTI, which will look good to lenders when you\u2019re ready to apply for a loan.\u00a0<\/span><\/p>\n

5. Work with a real estate agent<\/span><\/h3>\n

A good <\/span>real estate agent<\/span><\/a> can help you understand the current<\/span> housing market<\/span><\/a>, maximize your budget, and connect you with lenders who will find the right loans and assistance programs for your specific situation.\u00a0<\/span><\/p>\n

6. Consider a co-signer or co-buyer<\/span><\/h3>\n

Buying a house with a friend<\/span><\/a> or co-buyer is a great way to pool resources and break into homeownership with a low income. If you prefer not to have a roommate, a co-signer with good credit and a stable income can improve your chances of qualifying for a loan. A co-signer takes on legal responsibility for the loan if payments aren\u2019t made.<\/span><\/p>\n

7. Research first-time homebuyer programs and loans<\/span><\/h3>\n

We\u2019ll dive into some of the most common loan and assistance programs for low-income buyers below.\u00a0<\/span><\/p>\n

Loan options for low-income buyers<\/span><\/h2>\n

There are several loan options for buying a house with low income, and many are designed specifically for first-time and lower-income buyers. Some require as little as 3% down, while others offer 0% down payment options. The right loan depends on your income, credit score, and location.<\/span><\/p>\n

HomeReady by Fannie Mae<\/span><\/h3>\n

The<\/span> HomeReady<\/span><\/a> loan by Fannie Mae is a type of conventional loan with flexible terms. It may offer a $2,500 borrower credit toward the down payment or closing costs in certain cases, and considers positive rent payments towards loan eligibility. While you will need to pay PMI, you have the ability to <\/span>cancel it once you reach 20% equity<\/span><\/a>. A homeowner\u2019s education course is also required to qualify for this loan.\u00a0<\/span><\/p>\n