It can be challenging to buy a house with a low income, because depending on the circumstances, a lender may not approve you for a mortgage. A low salary also makes it difficult to save enough for a down payment and closing costs. Fortunately, there are loan programs and other forms of assistance that can help make your homeownership dreams a reality. Read about the best mortgage lenders for low and no down payments. How to buy a house with a low income 1. Improve your credit score Lenders assess your ...

Core Insights - FHA loans are government-backed mortgages designed to make homeownership more accessible for borrowers with limited down payment funds and less-than-ideal credit histories [1] - The Federal Housing Administration (FHA) sets annual loan limits that vary by county and property type, reflecting changes in home prices [4][5] FHA Loan Limits - The FHA loan limit for 2025 is determined based on the national conforming loan limit set by the Federal Housing Finance Agency (FHFA), which is $806,500 for one-unit properties [4] - The lowest FHA loan limit in 2025 is $524,225, which is 65% of the national conforming loan limit, while the ceiling for high-cost areas is $1,209,750, calculated as 150% of the conforming loan limit [5] Comparison with Conforming Loans - FHA loan limits are generally lower than those for conforming loans, with a maximum FHA loan amount of $524,225 for single-family homes compared to $806,500 for conforming loans in most counties [6] FHA Loan Requirements - FHA loans require a minimum credit score of 580 for a 3.5% down payment, while a score between 500 and 580 necessitates a 10% down payment [7] - Lenders typically prefer a debt-to-income (DTI) ratio below 43%, although some may accept higher ratios depending on other financial factors [7] Additional Considerations - FHA loans require mortgage insurance premiums (MIPs) regardless of the down payment amount, including an upfront MIP of 1.75% of the loan amount and ongoing annual MIP [9][12] - Properties financed with FHA loans must meet specific appraisal standards to ensure they meet the FHA Minimum Property Standards [12]

Mortgages insured by the U.S. Department of Agriculture, also known as USDA loans, cater to prospective homeowners looking for a small-town lifestyle. It is the only government-backed loan that seeks to develop safe rural communities for families of modest means. Here are our top picks for USDA lenders in October 2025. The best USDA mortgage lenders of October 2025 Best USDA lender for low interest rates: Pennymac Why Pennymac mortgages stand out: Pennymac is the largest U.S. lender of USDA loans and ...

If having a little land and a decent home outside of the city is a priority for you, a USDA loan may be your road to rural living. USDA mortgages finance the purchase of residential properties outside of urban areas, often with no down payment. Read more: What are government home loans? In this article: What are USDA loans? To encourage strong communities and affordable housing, the United States Department of Agriculture's Rural Development program guarantees loans for approved lenders. USDA mortgages ...