Homeownership may seem out of reach for those
with a low income, but at Shelto, we believe that with the right guidance and
tools, this dream can become a reality. Here’s a step-by-step guide to help you
navigate the process.
1. Assess Your
Financial Situation
• Determine Your Income: Include all sources of income, such as wages, government
assistance, part-time jobs, etc.
• Evaluate Your Expenses: List your monthly expenses to understand how much you can
afford for mortgage payments.
• Example: If you earn $2,500 per month and have expenses of $1,500, you can potentially
afford $1,000 for a mortgage payment.
2. Improve Your
Credit Score
• Check Your Credit Report: Obtain a free credit report and correct any errors.
• Build Credit If Needed: Pay bills on time, reduce debt, and avoid opening new
credit lines unnecessarily.
• Example: A credit score of 680 or above can improve your chances of approval.
3. Save for a Down
Payment
• Set a Savings Goal: Even a small down payment can help.
• Consider Assistance Programs: Investigate government programs that may assist with down
payments.
• Example: Saving $5,000 for a down payment on a $100,000 property.
4. Explore Loan
Options Suitable for Low Income
• Consult with Shelto’s Mortgage Agents: Discuss loan types specifically designed for low-income
borrowers.
• Consider Government Programs: In Canada, programs like the First-Time Home Buyer
Incentive can help.
• Example: An FHA loan may require only 3.5% down and has more flexible credit
requirements.
5. Obtain
Pre-Approval
• Prepare Necessary Documents: Include proof of income, employment, credit report, and
debts.
• Apply with Shelto: This will give you an estimate of how much you can borrow.
6. Find an
Affordable Property
• Work with a Real Estate Agent: Find an agent experienced in working with low-income
buyers.
• Search in Your Price Range: Stay within the budget determined by your pre-approval.
7. Apply for Your
Mortgage
• Submit Your Application through Shelto: Provide all requested documents promptly.
• Consider a Co-Signer: If needed, a co-signer with a higher income might
strengthen your application.
8. Close on the
Property
• Review the Closing Costs: Be prepared for additional costs like inspection and
appraisal fees.
• Finalize Your Mortgage: Sign the papers and make it official.
Considerations
and Tips for Low-Income Borrowers
• Consider a Longer Loan Term: A 30-year loan may result in lower monthly payments.
• Watch for Subsidized Housing Opportunities: These can provide more affordable options.
• Work Closely with Shelto Agents: Our expert agents are skilled in helping low-income
borrowers navigate the process.
Why
Choose Shelto?
At Shelto, we prioritize your individual
needs, understanding that each financial situation is unique. We provide
guidance, support, and access to a wide range of mortgage products designed to
help low-income individuals achieve homeownership.
Conclusion
While getting a mortgage loan on a low income
presents challenges, it’s not impossible. With careful planning, adherence to a
budget, exploration of suitable loan options, and expert guidance from Shelto,
you can embark on the path to homeownership.
Remember, this guide serves as a general
overview. Contact a Shelto mortgage agent for personalized assistance tailored
to your specific situation.
Note: The information provided in this guide is
for educational purposes and should not replace personalized advice from a
Shelto mortgage agent or other financial professionals. The availability of
specific loan products and government programs may vary based on individual
qualifications and local regulations
