You don’t need a huge savings account or a high-paying job to land a new home.
There are many low-income mortgage programs for those on a tight budget. In addition, community assistance and grant money are also widely available.
While this may sound unbelievable during these times of stricter rules and regulations, people with low income still manage to buy new houses all over the country.
Here are a few inspiring examples of people who found their paradise with a low-income mortgage that’s just perfect for their needs:
Kerri William’s Story
Ms. Williams grew up in a home full of domestic violence, and when her mother died from the abuse, she was put into foster care.
Later on in life, she juggled graduating from high school and working part-time while she was pregnant. However, she soon lost her job, and the rent increased until she was unable to afford her apartment even with public assistance.
After years of living with friends, family, and even homeless shelters, her luck finally turned when she started her own online business on Etsy and learned of Sprint Funding’s Conventional Loans.
After finding a small house in a quiet corner of Clearlake, she started looking for the lowest mortgage rates in the state which targets very-low to low-income families, and applied immediately.
Once she was approved, Spring Funding got to work for her and her dream home.
Today, Ms. Williams and her daughter live happily at their own property with a booming business and say that it is a miracle to be able to get a home of her own.
Lani Torres’ Story
In 2012, Lani Torres was a 22-year-old single mother of three boys. For eight months, they were homeless and had to move from one relative to another. When she could afford it, Lani took her family to a motel just to have a comfortable bed to sleep on at night.
And because rent is at an all-time high in Alameda County, she couldn’t afford an apartment, while her part-time job couldn’t support her family’s basic needs.
When she started baking for friends and family, she saved up money to launch her online bakery, where customers send in orders ahead of time for her to bake on special occasions.
Soon after she was earning decent money where she jumped at the opportunity to finally get her family the home they deserve.
With the help of our certified loan officers, Lani was able to get the assistance she needed for the whole process and successfully invested in her first home.
With the help of conventional loans, Lani was able to build a foundation that allowed her to provide a stable future for her children.
Instead of focusing on where her family might be able to sleep for the night, Lani can now concentrate on her baking career while looking for childcare for her little boys.
She was able to overcome her challenges, including a violent death in the family.
Today, Lani is self-sufficient and lives in her beautiful home in a quaint neighborhood with her boys.
Joaquin Zamora’s Story
Mr. Zamora escaped an abusive relationship with his two children in 2011, and through counseling, he was able to find peace and started to rebuild his life.
He was, however, reluctant to receive help from friends and family, “I want to move forward on my own, without taking help from people.” To help with his transition towards a new life, Joaquin applied for a rental apartment in Orange, California.
However, he found that his journey to a new life wouldn’t be an easy one. After qualifying for the new apartment he wanted, he lost a big partnership contract that would help to create opportunities for his graphic design company.
Devastated that he would no longer be able to qualify for the apartment, he instead focused on his career and moved back in with his parents to help take care of his children.
After applying for a conventional loan, Joaquin found that he qualified and gave all his effort to provide a home for his children.
In 2013, his family moved into their new home and found their paradise while he continued to grow his company. Upon reflection of his journey to where he is now, Joaquin sees a brighter future for his family.
Why Apply for a Conventional Loan?
Just like in the success stories above, Sprint Funding can provide conventional loans for many different circumstances and situations.
Our team consists of experienced loan specialists that can help you every step of the way. A conventional loan will provide you with the ideal benefits to help you get the home you’re after.
A conventional loan or a conventional mortgage is a type of home loan that homebuyers can receive which isn’t insured, guaranteed, secured, or backed by the government.
If you’re looking for your new home and you want to apply for a conventional loan, you will be backed by private lenders such as credit unions, mortgage companies, and banks.
You can also be insured by Fannie Mae and Freddie Mac, two of the biggest enterprises sponsored by the government and guarantee most mortgages in the U.S.
And because of their low rates and wide availability, the popularity of conventional loans have persuaded 3 out of 5 buyers to apply for it when purchasing a house.
Are Mortgage Rates Trending Up or Down?
If you’re in the market for a home or to refinance your current residence, you can expect mortgage rates to stay low even in 2021.
But if you’re expecting rates to fall below 2.5% then don’t hold your breath since the U.S. economy has rebounded.
But if you want to know the actual numbers, the average 30-year fixed mortgage rates reached an all-time low just in September, going down to 3.09%, according to a weekly survey by Bankrate of large lenders.
The uncertainty that has spread from the pandemic has also sewn doubts about where the rates will be by mid-2021.
Some experts believe that rates may fall even lower, further setting new record lows. Others believe that it can climb back up to 3.5%.
Of course, there is still a wild card — how will the U.S. economy recover from COVID-19, an unprecedented economic shock for the past century.
What Happens After Mortgage Approval?
Once you get approval for your mortgage, your lender will provide you with a commitment letter that explains the loan term as well as the terms of your mortgage’s agreement.
This commitment letter will include the monthly costs for repaying the loan and the annual percentage rate.
It will include loan conditions before you close on the mortgage. Finally, you will need to sign the letter and return it by the specific time to your lender.
Frequently Ask Questions
What is the downside of a conventional loan?
Potential downsides include stricter qualification requirements, larger down payments, private mortgage insurance (PMI) for low down payments, and stringent property standards.
Is it hard to get approved for a conventional loan?
Approval can be more challenging due to factors like higher credit score requirements, debt-to-income ratio scrutiny, substantial documentation needs, and the preference for larger down payments.
Are conventional loans worth it?
Conventional loans are worth considering for financially strong borrowers with good credit, as they offer competitive interest rates and flexible terms. However, individual circumstances and preferences should be considered.
Why would someone only take a conventional loan?
Borrowers may choose conventional loans for their financial strength, to avoid upfront fees, for specific property types, or when seeking higher loan limits for more expensive homes.