How Can I Get A Mortgage Loan With Low Income?

Getting a mortgage with a low income is achievable by taking strategic steps to improve your financial profile. At income-partners.net, we understand that navigating the home buying process with limited financial resources can be challenging; therefore, we offer insights and resources to help you secure a mortgage, even with a low income, while connecting you with valuable partnership opportunities to boost your earning potential. Increase your chances of mortgage approval by exploring strategies such as credit score enhancement, debt reduction, and leveraging first-time homebuyer programs; discover how to navigate your path to homeownership with confidence and strategic partnerships.

1. Understand The Landscape of Low-Income Mortgages

Understanding the landscape of mortgages for low-income individuals involves knowing what lenders look for and what programs are available. Lenders primarily consider your credit score, debt-to-income ratio, employment history, and down payment when evaluating your mortgage application.

Credit Score: A higher credit score indicates lower risk.
Debt-to-Income (DTI) Ratio: This measures your debt relative to your income.
Employment History: Consistent employment shows stability.
Down Payment: A larger down payment reduces the lender’s risk.

Let’s dive into these crucial factors and how they impact your ability to secure a mortgage.

1.1. How Does Credit Score Impact Mortgage Approval?

A credit score significantly influences mortgage approval because it is a direct reflection of your financial reliability. A high credit score signals to lenders that you are responsible and likely to repay your loan as agreed.

FICO Score Range: Generally, a FICO score ranges from 300 to 850, with higher scores indicating less risk.
Impact on Interest Rates: Borrowers with higher credit scores typically receive lower interest rates, saving them thousands of dollars over the life of the loan.
Credit Score Improvement: Consistently paying bills on time and reducing outstanding debts can improve your credit score.

According to research from Experian, borrowers with a credit score above 700 are more likely to be approved for a mortgage with favorable terms. Improving your credit score is one of the most effective ways to enhance your mortgage prospects.

1.2. What Is Debt-To-Income Ratio and Why Does It Matter?

The debt-to-income (DTI) ratio is a critical factor in mortgage approval, representing the proportion of your gross monthly income that goes towards debt payments. Lenders use this ratio to assess your ability to manage monthly payments.

Calculation: DTI is calculated by dividing your total monthly debt payments by your gross monthly income.
Ideal DTI Ratio: Ideally, lenders prefer a DTI ratio of 45% or less, but this can vary based on the loan type and lender.
Lowering DTI: Reducing your debt, such as paying off credit cards or loans, will lower your DTI ratio, making you a more attractive borrower.

A lower DTI indicates you have more disposable income, reducing the risk for the lender. Strategies for improving your DTI include consolidating debt or focusing on high-interest debts first.

1.3. How Important Is Employment History for Mortgage Approval?

Employment history plays a crucial role in the mortgage approval process because it demonstrates your stability and ability to maintain a steady income. Lenders want to see a consistent work record, typically spanning at least two years.

Consistency: Consistent employment history shows lenders you have a reliable income source.
Job Changes: Frequent job changes can raise red flags unless you can demonstrate career progression or stability in your field.
Self-Employment: Self-employed individuals may need to provide additional documentation, such as tax returns and profit and loss statements, to verify their income.

Consistent employment history assures lenders of your ability to repay the mortgage, and it can significantly increase your chances of approval.

1.4. Why Does the Size of Your Down Payment Matter?

The size of your down payment matters because it directly impacts the lender’s risk and your loan terms. A larger down payment reduces the amount you need to borrow, lowering the risk for the lender.

Lower Loan Amount: A higher down payment means you need to borrow less, reducing your monthly payments and the total interest paid over the life of the loan.
Lower Interest Rates: Lenders often offer lower interest rates to borrowers who make larger down payments because they are seen as less risky.
Eliminating PMI: Making a down payment of 20% or more can eliminate the need for private mortgage insurance (PMI), saving you additional monthly expenses.

A significant down payment can make you a more attractive borrower and lead to better loan terms, making homeownership more affordable.

2. Strategies to Improve Your Mortgage Prospects

Improving your mortgage prospects involves several strategic steps that can make you a more attractive candidate to lenders. These strategies include maximizing your credit score, paying off debt, establishing a budget, and saving for a down payment.

2.1. Maximizing Your Credit Score

Maximizing your credit score involves several key actions that demonstrate financial responsibility. A higher credit score can lead to better mortgage terms and lower interest rates.

Check Your Credit Report: Review your credit report annually to ensure accuracy and identify any errors that need correction.
Pay Bills On Time: Consistent on-time payments are crucial for improving your credit score.
Reduce Credit Card Balances: Aim to keep your credit card balances low, ideally below 30% of your credit limit.
Avoid Opening Too Many New Accounts: Opening multiple new credit accounts in a short period can lower your credit score.

According to a study by the Consumer Financial Protection Bureau, borrowers who consistently manage their credit well can see significant improvements in their credit scores over time.

2.2. Paying Off Your Debt

Paying off debt improves your DTI ratio, making you a more attractive borrower to lenders. Prioritize paying off high-interest debt to maximize the impact.

Create a Debt Payoff Plan: Develop a strategy to pay off your debts, focusing on the highest interest rates first.
Consolidate Debt: Consider consolidating high-interest debt into a lower-interest loan.
Avoid New Debt: Refrain from taking on new debt while you are trying to pay off existing debts.
Track Progress: Regularly monitor your progress to stay motivated and adjust your plan as needed.

Reducing your debt burden not only improves your DTI ratio but also frees up more of your monthly income for mortgage payments and other expenses.

2.3. Establishing a Budget

Establishing a budget is essential for understanding your financial situation and ensuring you can afford the ongoing costs of homeownership. A budget helps you manage your income and expenses effectively.

Track Income and Expenses: Monitor your monthly income and expenses to identify areas where you can save.
Prioritize Needs vs. Wants: Differentiate between essential needs and discretionary wants to allocate your resources effectively.
Set Financial Goals: Establish specific, measurable, achievable, relevant, and time-bound (SMART) financial goals.
Review Regularly: Review and adjust your budget regularly to adapt to changing circumstances and financial priorities.

Creating a budget provides a clear picture of your finances, helping you make informed decisions about homeownership.

2.4. Saving for a Down Payment

Saving for a down payment is a critical step in the home buying process, demonstrating your commitment to the purchase and reducing the amount you need to borrow. Start saving early and set realistic goals.

Set a Savings Goal: Determine the amount you need to save for a down payment, considering the type of loan and the cost of homes in your area.
Automate Savings: Set up automatic transfers from your checking account to a savings account each month.
Cut Unnecessary Expenses: Identify and eliminate unnecessary expenses to free up more money for savings.
Explore Down Payment Assistance Programs: Research and apply for down payment assistance programs that can help you reach your savings goal faster.

Saving for a down payment shows lenders you are serious about homeownership and can improve your chances of securing a mortgage with favorable terms.

3. Explore Home Loan Options for Low-Income Buyers

Several home loan options are available for low-income buyers, each with its own eligibility requirements and benefits. Understanding these options can help you find a loan that fits your specific needs and circumstances.

3.1. FHA Loans

FHA loans are insured by the Federal Housing Administration and are designed to help first-time homebuyers and low-to-moderate-income borrowers. They typically require a lower down payment and have more flexible credit requirements.

Lower Down Payment: FHA loans often require a down payment as low as 3.5%.
Flexible Credit Requirements: Borrowers with lower credit scores may qualify for FHA loans.
Mortgage Insurance: FHA loans require mortgage insurance, which includes an upfront premium and an annual premium paid monthly.

FHA loans can be a great option for those with limited savings or less-than-perfect credit.

3.2. USDA Loans

USDA loans are offered by the U.S. Department of Agriculture and are designed to help low-income borrowers purchase homes in rural and suburban areas. These loans often have no down payment requirement.

No Down Payment: USDA loans typically do not require a down payment.
Income Limits: Borrowers must meet specific income limits to qualify for USDA loans.
Geographic Restrictions: The property must be located in a USDA-eligible rural or suburban area.

USDA loans can make homeownership accessible to those in eligible areas who might not have the savings for a down payment.

3.3. VA Loans

VA loans are guaranteed by the U.S. Department of Veterans Affairs and are available to eligible veterans, active-duty service members, and surviving spouses. These loans often have no down payment requirement and do not require private mortgage insurance.

No Down Payment: VA loans typically do not require a down payment.
No PMI: VA loans do not require private mortgage insurance (PMI).
Eligibility Requirements: Borrowers must meet specific eligibility requirements based on their military service.

VA loans offer significant benefits to eligible veterans, making homeownership more affordable.

3.4. Fannie Mae and Freddie Mac Programs

Fannie Mae and Freddie Mac offer several programs designed to help low-to-moderate-income borrowers purchase homes. These programs often have flexible credit requirements and may offer down payment assistance.

Fannie Mae HomeReady: This program offers low down payment options and flexible credit requirements for eligible borrowers.
Freddie Mac Home Possible: This program provides affordable mortgage options for low-to-moderate-income borrowers.
Down Payment Assistance: Both Fannie Mae and Freddie Mac programs may offer down payment assistance options.

These programs can help make homeownership more accessible to a wider range of borrowers.

4. First-Time Homebuyer Programs and Assistance

First-time homebuyer programs offer loans, grants, tax credits, and down payment assistance to eligible buyers. These programs are available at the federal, state, county, and local levels.

4.1. Federal Programs

Several federal programs offer assistance to first-time homebuyers, making homeownership more affordable and accessible. These programs include FHA loans, USDA loans, and VA loans.

FHA Loans: Insured by the Federal Housing Administration, these loans offer lower down payments and flexible credit requirements.
USDA Loans: Offered by the U.S. Department of Agriculture, these loans help low-income borrowers purchase homes in rural and suburban areas.
VA Loans: Guaranteed by the U.S. Department of Veterans Affairs, these loans are available to eligible veterans and active-duty service members.

Federal programs provide a solid foundation for first-time homebuyers, offering various options to meet different needs.

4.2. State and Local Programs

State and local governments offer a variety of programs to assist first-time homebuyers, including grants, tax credits, and down payment assistance. These programs can significantly reduce the upfront costs of buying a home.

Grants: Grants provide funds that do not need to be repaid, helping cover down payment or closing costs.
Tax Credits: Tax credits reduce your tax liability, freeing up more money for homeownership expenses.
Down Payment Assistance: These programs provide funds to help you meet the down payment requirement, often in the form of a loan or grant.

Check with your state and local housing agencies to learn about available programs in your area.

4.3. Employer Assistance Programs

Some employers offer assistance programs to help their employees become homeowners. These programs may include financial counseling, down payment assistance, or employer-matched savings programs.

Financial Counseling: Employers may provide access to financial counselors who can help you develop a budget, improve your credit, and plan for homeownership.
Down Payment Assistance: Some employers offer down payment assistance as a benefit to attract and retain employees.
Employer-Matched Savings: These programs match a portion of your savings, helping you reach your down payment goal faster.

Check with your HR department to see if your employer offers any homeownership assistance programs.

5. The Role of a Co-Signer

Enlisting the help of a co-signer can improve your chances of mortgage approval by providing the lender with an additional layer of security. A co-signer agrees to be responsible for the loan if you are unable to make payments.

5.1. Benefits of Having a Co-Signer

Having a co-signer can offer several benefits, including increased approval odds and better loan terms. The lender considers the co-signer’s credit history and income in addition to yours, reducing their risk.

Increased Approval Odds: A co-signer can help you qualify for a mortgage if you have a low credit score or limited income.
Better Loan Terms: The lender may offer you a lower interest rate or better loan terms due to the added security of a co-signer.
Shared Responsibility: The co-signer shares the responsibility of the loan, providing added peace of mind for the lender.

However, it is crucial to understand the responsibilities and risks involved for both you and the co-signer.

5.2. Responsibilities and Risks for the Co-Signer

Being a co-signer is a significant responsibility with potential risks. The co-signer is legally obligated to repay the loan if the borrower defaults, and their credit score can be negatively impacted by missed payments.

Financial Obligation: The co-signer is responsible for repaying the loan if the borrower fails to do so.
Credit Impact: Missed payments or default can negatively impact the co-signer’s credit score.
Legal Liability: The co-signer is legally liable for the entire loan amount.

It is essential to have an open and honest discussion with the co-signer about these responsibilities and risks before proceeding.

6. Navigate The Home Buying Process

Navigating the home buying process involves several key steps, from pre-approval to closing. Understanding each step can help you make informed decisions and avoid common pitfalls.

6.1. Pre-Approval

Getting pre-approved for a mortgage is the first step in the home buying process. Pre-approval involves submitting your financial information to a lender, who will assess your ability to qualify for a loan.

Financial Assessment: The lender will review your credit score, income, debt, and assets to determine how much you can afford to borrow.
Interest Rate Lock: Pre-approval allows you to lock in an interest rate, protecting you from potential rate increases.
Negotiating Power: Being pre-approved strengthens your negotiating power when making an offer on a home.

Pre-approval gives you a clear idea of your budget and shows sellers that you are a serious buyer.

6.2. Finding a Property

Finding the right property involves identifying your needs and preferences, researching available homes, and working with a real estate agent.

Needs and Preferences: Determine your priorities, such as location, size, amenities, and budget.
Research: Research available homes online and in person, considering factors such as neighborhood, schools, and local amenities.
Real Estate Agent: Work with a qualified real estate agent who can help you find properties that meet your needs and negotiate on your behalf.

Finding the right property is a crucial step in the home buying process, ensuring you find a home that you love and can afford.

6.3. Making an Offer

Making an offer involves submitting a written offer to the seller, outlining the purchase price, terms, and contingencies.

Purchase Price: Determine a fair purchase price based on market conditions, comparable sales, and the condition of the property.
Terms: Include any specific terms, such as the closing date, personal property included, and seller concessions.
Contingencies: Add contingencies to protect your interests, such as a home inspection, appraisal, and financing contingency.

Making a strong offer can increase your chances of having your offer accepted by the seller.

6.4. Home Inspection

A home inspection involves hiring a qualified inspector to assess the condition of the property, identifying any potential issues or repairs needed.

Qualified Inspector: Hire a licensed and experienced home inspector to conduct a thorough inspection of the property.
Inspection Report: Review the inspection report carefully, noting any significant issues or repairs needed.
Negotiation: Use the inspection report to negotiate with the seller for repairs or a price reduction.

A home inspection can help you avoid costly surprises and ensure you are making an informed decision about the property.

6.5. Appraisal

An appraisal involves hiring a licensed appraiser to determine the fair market value of the property, ensuring the lender that the purchase price is justified.

Licensed Appraiser: Hire a licensed appraiser to conduct an independent appraisal of the property.
Fair Market Value: The appraiser will assess the property’s value based on market conditions, comparable sales, and the condition of the property.
Loan Approval: The lender will use the appraisal to determine the loan amount, ensuring it does not exceed the property’s fair market value.

An appraisal protects both you and the lender, ensuring the property is worth the purchase price.

6.6. Closing

Closing is the final step in the home buying process, involving the transfer of ownership from the seller to the buyer.

Final Walk-Through: Conduct a final walk-through of the property to ensure it is in the agreed-upon condition.
Closing Documents: Review and sign all closing documents, including the mortgage agreement, title documents, and transfer documents.
Funds Transfer: Transfer funds to cover the down payment, closing costs, and any other required payments.

Closing marks the completion of the home buying process and the beginning of your homeownership journey.

7. Partnership Opportunities to Boost Income

Exploring partnership opportunities can significantly boost your income, making it easier to afford a mortgage and manage homeownership expenses.

7.1. Leveraging Income-Partners.net

Income-partners.net is a valuable platform for finding partnership opportunities to increase your income. The website connects individuals with potential business partners, offering a wide range of opportunities to collaborate and grow your earning potential.

Find Strategic Partners: Identify partners who align with your goals and can contribute to your income growth.
Explore Diverse Opportunities: Discover various partnership types, from strategic alliances to joint ventures.
Build Trustworthy Relationships: Establish reliable and effective partnerships for long-term financial success.
Effective Management Strategies: Learn how to manage and maintain partnerships for optimal outcomes.
Stay Updated: Keep up with the latest partnership trends and opportunities.

7.2. Types of Partnerships

Several types of partnerships can help you boost your income. Understanding these different types can help you choose the right partnerships for your goals.

Strategic Partnerships: Collaborating with other businesses to expand your reach and market share.
Affiliate Marketing: Earning commissions by promoting other companies’ products or services.
Joint Ventures: Partnering with another business to undertake a specific project or venture.
Distribution Partnerships: Working with a distributor to sell your products or services to a wider audience.

7.3. Building and Maintaining Successful Partnerships

Building and maintaining successful partnerships requires clear communication, mutual respect, and a shared vision. It’s important to establish clear roles, responsibilities, and expectations from the outset.

Clear Communication: Maintain open and honest communication with your partners, addressing any issues or concerns promptly.
Mutual Respect: Value your partners’ contributions and perspectives, fostering a collaborative and supportive environment.
Shared Vision: Align your goals and objectives with your partners, ensuring you are working towards a common purpose.
Regular Evaluation: Regularly evaluate the partnership’s performance, identifying areas for improvement and celebrating successes.

7.4. Success Stories of Income-Boosting Partnerships

There are numerous success stories of individuals and businesses who have boosted their income through strategic partnerships. These stories can inspire and motivate you to explore partnership opportunities.

Case Study 1: A small business partnered with a larger company to expand its distribution network, resulting in a significant increase in sales.
Case Study 2: An individual partnered with a marketing agency to promote their online course, leading to a substantial boost in revenue.
Case Study 3: Two entrepreneurs partnered to launch a new product, combining their expertise and resources to achieve greater success.

Explore income-partners.net for more success stories and inspiration on how partnerships can transform your financial future.

Address: 1 University Station, Austin, TX 78712, United States. Phone: +1 (512) 471-3434. Website: income-partners.net.

8. Navigating Homeownership with a Low Income

Navigating homeownership with a low income requires careful financial planning and management. By creating a budget, managing expenses, and exploring additional income opportunities, you can successfully manage the costs of homeownership.

8.1. Budgeting for Homeownership

Budgeting for homeownership involves creating a detailed budget that includes all home-related expenses, such as mortgage payments, property taxes, homeowners insurance, and maintenance costs.

Track All Expenses: Monitor all your income and expenses, identifying areas where you can save.
Prioritize Needs: Differentiate between essential needs and discretionary wants, allocating your resources effectively.
Emergency Fund: Set aside an emergency fund to cover unexpected home repairs or expenses.
Review Regularly: Review and adjust your budget regularly to adapt to changing circumstances and financial priorities.

8.2. Managing Ongoing Expenses

Managing ongoing expenses is crucial for maintaining financial stability as a homeowner. Look for ways to reduce your expenses, such as energy-efficient upgrades or refinancing your mortgage.

Energy Efficiency: Invest in energy-efficient appliances and upgrades to lower your utility bills.
Refinancing: Consider refinancing your mortgage to take advantage of lower interest rates.
Home Maintenance: Regularly maintain your home to prevent costly repairs down the road.

8.3. Exploring Additional Income Opportunities

Exploring additional income opportunities can help you cover homeownership expenses and build financial security. Consider part-time jobs, freelance work, or starting a side business.

Part-Time Jobs: Look for part-time jobs that fit your schedule and interests.
Freelance Work: Offer your skills and services as a freelancer, providing flexibility and additional income.
Side Business: Start a side business based on your passions and expertise, creating a new income stream.

9. Staying Informed and Seeking Expert Advice

Staying informed about the latest mortgage trends and seeking expert advice can help you make informed decisions and navigate the home buying process with confidence.

9.1. Monitoring Mortgage Trends

Monitoring mortgage trends involves staying up-to-date on interest rates, loan programs, and market conditions. This information can help you make strategic decisions about when and how to buy a home.

Interest Rates: Keep track of interest rate fluctuations, as they can significantly impact your monthly mortgage payments.
Loan Programs: Stay informed about new loan programs and assistance programs that may be available to you.
Market Conditions: Monitor local market conditions to determine whether it is a good time to buy or sell a home.

9.2. Consulting with Financial Advisors

Consulting with financial advisors can provide personalized guidance and support, helping you make informed decisions about your finances and homeownership.

Financial Planning: A financial advisor can help you develop a comprehensive financial plan that includes budgeting, debt management, and savings goals.
Mortgage Options: A financial advisor can help you evaluate different mortgage options and choose the one that best fits your needs.
Investment Strategies: A financial advisor can help you develop investment strategies to build wealth and secure your financial future.

9.3. Working with Real Estate Professionals

Working with experienced real estate professionals can provide valuable insights and expertise, helping you navigate the home buying process smoothly.

Real Estate Agents: A real estate agent can help you find properties that meet your needs, negotiate on your behalf, and guide you through the purchase process.
Mortgage Brokers: A mortgage broker can help you find the best mortgage rates and terms, working with multiple lenders to find the right loan for you.
Home Inspectors: A home inspector can assess the condition of the property, identifying any potential issues or repairs needed.

10. Taking Action and Achieving Homeownership

Taking action is the final step in achieving homeownership. By implementing the strategies and tips discussed in this article, you can increase your chances of securing a mortgage and realizing your dream of owning a home.

10.1. Set Clear Goals

Setting clear goals is essential for staying focused and motivated throughout the home buying process. Define your objectives and create a timeline for achieving them.

Specific Goals: Set specific goals, such as improving your credit score, paying off debt, or saving for a down payment.
Measurable Goals: Make your goals measurable, so you can track your progress and stay on track.
Achievable Goals: Set achievable goals that are realistic and attainable within your timeframe.

10.2. Create a Plan

Creating a plan involves outlining the steps you need to take to achieve your goals. Break down your objectives into smaller, manageable tasks and prioritize them accordingly.

Action Steps: Identify the specific actions you need to take to improve your credit score, pay off debt, or save for a down payment.
Timeline: Create a timeline for completing each action step, setting deadlines to keep you on track.
Resources: Identify the resources you need to support your plan, such as financial advisors, real estate agents, or mortgage brokers.

10.3. Stay Persistent

Staying persistent is crucial for overcoming challenges and setbacks along the way. The home buying process can be complex and time-consuming, but by remaining committed to your goals, you can achieve success.

Positive Attitude: Maintain a positive attitude, focusing on your progress and celebrating small victories.
Learn from Setbacks: View setbacks as learning opportunities, adjusting your plan as needed and continuing to move forward.
Seek Support: Lean on your support network, including family, friends, and professionals, for encouragement and guidance.

10.4. Celebrate Successes

Celebrating successes is important for maintaining motivation and recognizing your accomplishments. Acknowledge your progress and reward yourself for reaching milestones along the way.

Acknowledge Progress: Take time to acknowledge your progress, recognizing the hard work and effort you have put in.
Reward Yourself: Treat yourself to something special for reaching milestones, such as improving your credit score or saving a certain amount for a down payment.
Share Your Success: Share your successes with others, inspiring and motivating them to pursue their own homeownership goals.

Visit income-partners.net to discover more strategies, resources, and partnership opportunities that can help you achieve financial success and realize your dream of owning a home, even with a low income.

FAQ Section

1. What is a debt-to-income ratio (DTI)?
DTI is the percentage of your gross monthly income that goes towards paying debts. It’s calculated by dividing your total monthly debt payments by your gross monthly income. Lenders use DTI to assess your ability to manage monthly payments.

2. What credit score is needed to get a mortgage?
While requirements vary, a credit score of 620 or higher is typically needed for conventional mortgages. FHA loans may allow for lower scores, sometimes as low as 500 with a larger down payment.

3. What is private mortgage insurance (PMI)?
PMI is insurance that protects the lender if you stop making payments on your loan. It’s typically required if you make a down payment of less than 20% on a conventional mortgage.

4. What is an FHA loan?
An FHA loan is a mortgage insured by the Federal Housing Administration. It’s designed to help first-time homebuyers and low-to-moderate-income borrowers by offering lower down payments and more flexible credit requirements.

5. How can I improve my chances of getting approved for a mortgage with a low income?
Improve your credit score by paying bills on time and reducing debt. Lower your DTI by paying off debts. Save for a larger down payment. Explore first-time homebuyer programs. Consider a co-signer.

6. What are some first-time homebuyer programs?
First-time homebuyer programs offer loans, grants, tax credits, and down payment assistance to eligible buyers. These programs are available at the federal, state, county, and local levels.

7. What is the role of a co-signer on a mortgage?
A co-signer agrees to be responsible for the loan if you are unable to make payments. The lender considers the co-signer’s credit history and income in addition to yours, reducing their risk.

8. How does income-partners.net help with mortgage affordability?
income-partners.net connects you with partnership opportunities to boost your income. By increasing your income, it becomes easier to afford a mortgage and manage homeownership expenses.

9. What are the steps in the home buying process?
The steps include pre-approval, finding a property, making an offer, home inspection, appraisal, and closing. Understanding each step can help you make informed decisions and avoid common pitfalls.

10. What are USDA loans?
USDA loans are offered by the U.S. Department of Agriculture and are designed to help low-income borrowers purchase homes in rural and suburban areas. These loans often have no down payment requirement.