Owning your own home is the American dream. But with today’s housing crisis, buying a house can feel impossible for many working families.
But you don’t have to do it alone! Many government and nonprofit programs exist to help you make your dream of home ownership possible.
Read below about programs that can help you:
Less Money Up Front and Cheaper Loans for First-Time Homebuyers
For many of us, there are two big things in the way of buying a house: coming up with the money needed for the downpayment and then getting approved for a loan we can afford.
That’s why the Federal Housing Administration (FHA) offers the FHA loan program for first-time homebuyers, seniors, and people buying a mobile home.
The FHA loan program does two important things.
- It helps homebuyers get approved for loans with much smaller downpayments, so you need less money up front.
- It helps people with lower credit scores get approved for safe, stable home loans that they otherwise could not get.
If you want to apply for an FHA loan, visit the Housing and Urban Development (HUD) website to search for an FHA-approved lender.
Or talk to a HUD-certified housing counselor about the best way to get started – see below!
Housing Counselors
A HUD-approved housing counselor can help you learn about:
- How to look for and choose a home that’s right for you and your budget.
- How to manage your money so you can save what you need for buying a home.
- How to avoid predatory loans.
- How to resolve a dispute if you’re behind on your mortgage or defaulted on an earlier mortgage.
- The laws around fair housing and discrimination.
Search online for a housing counseling agency near you, or call HUD’s interactive voice system at: (800) 569-4287.
Not all services offered by counseling agencies are free, so be sure to ask ahead about any potential costs. By law, participating agencies must provide counseling for free if you can’t afford it.
Fix Your Credit First
Before you get a home loan, make sure you’ve cleaned up your credit history as much as you can. That may help you get a cheaper loan.
Thanks to federal law, credit reporting companies have to give you a free copy of your credit report at least once a week. To get your report:
- Visit AnnualCreditReport.com or
- Call 1-877-322-8228, or
- Complete and mail the Annual Credit Report Request Form.
Once you get your report, look for anything that could hurt your credit history:
- Errors in any of the information about your name, address, or other information
- Overdue accounts or missed payments. Get current with anything you have due.
- Fraud or scam accounts opened in your name.
- Dispute any errors with companies that are claiming a problem you know isn’t true. Report any incidents of fraud to the federal government at IdentityTheft.gov.
The Fight Ahead
Many of the programs that help homebuyers could face changes or even total shutdown for next year given the current debate in Washington. Working America will be joining our allies in advocating for a fair economy and a government that gives working families what they deserve. Our strength comes from you – our members. Only by acting together can we fight back against the greedy corporations and their friends.
We’re asking all Working Americans to pledge to stay informed about what policies our leaders are advancing that support a fair economy and protecting consumers. Sign up here if you pledge to be part of that mission and if you want Working America updates and opportunities about a fair economy.
We know that these are uncertain times, and many of us are concerned about the future. Go to workingamerica.org/gethelp for more guides and tips on navigating the economy and preparing for the unknown.