Author: Bankrate
Getting Down Payment Help
A potential upside to having one income: You might be eligible for down payment assistance, which is often geared toward lower- or moderate-income homebuyers.
“Down payment assistance programs largely are unknown and underutilized,” Lautz says. “In many areas of the country, people are not aware that these products exist. They can help homebuyers get into homeownership sooner than expected.”
“I’ve found that those programs tend to help people on the lower rungs of the income ladder, which is what it’s meant for,” says Ralph Herrera, Realtor and senior real estate advisor at Engel & Volkers Atlanta. “But it’s tougher when you’re making less to save what you need for the down payment.”
Leading with Strong Credit
To be sure, your credit score is the biggest deciding factor for a mortgage. You can qualify for a conventional loan with a score as low as 620, but you won’t get the best mortgage rate unless your score is at least 740. If your score is below 620, you might instead be eligible for an FHA loan, which allows as low as 580.
