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More and more women are competing in the housing market to own their own homes.  Unlike days of past where traditional nuclear families with man as the head of household dominated the home buying scene, women with or without children are fast becoming a force to contend with in real estate acquisitions. 

Today, women even with a lower income can successfully purchase a home provided they take advantage of resources available to them. One of these resources is an FHA loan (Federal Housing Administration). These loans are government insured (like your backer, or co-signer) and provide lenders with more ease of giving the loan at little risk For women who have little or low credit, smaller incomes or are just starting out in life. These loans are attractive, offering just a fraction of a higher interest rate.

In order to qualify for an FHA loan,  your credit report history must reflect at least one year of acceptable credit. Other areas they look at are rental history, debt-to-income ratio, any new inquiries on your credit, and if you have had any judgments against you and paid them off. The great thing about an FHA home loan is you can make a down payment for as little as 3%. This is an obtainable goal on a low income.  Better yet, the down payment can be a gift, say from a non-profit organization, family member, or another government agency.

In conventional loans, your overall financial obligations must be around the range of 33-36%.  In a FHA mortgage it can be as high as 41% of your income. This is more wiggling room for those on lower incomes.  If this seems still out of your reach, consider doing your homework on other available avenues of home buying.  Talk to agencies within your community about other options, such as AHS (American Housing Services) or Habitat for Humanity. 

As well, consider using a subprime market lender.  The interest rates are going to higher, but it’s a start. After a couple years of solid payments, you may be able to refinance with a conventional lender at lower rates.  In the meantime, take a closer look at your finances, tidy up your credit report, and save pennies. 

Ask questions of your government agencies, mortgage experts, and real estate professional. Educate yourself and develop skills and discipline for your future.  It is not how much money you make…it’s what you do with the money you do make.