Affordable Home Mortgages

Can you Afford a Home Mortgage?

Have you been thinking of buying a new home or purchasing your first home but don't know where to begin? An affordable home doesn't have to be a pipe dream. Various government programs or housing non-profits like Habitat for Humanity are available to help even low income home buyers. Can you find an affordable home mortgage? Here are some housing tips to get you started.

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Can you Afford a Home Mortgage? Calculator

Purchasing a new home is daunting, especially if you're a first time home buyer with no or a low credit score. There are many resources out there for financial counseling that can help guide you on the path to home-ownership. The first step is knowing how much house you can afford. An online mortgage calculator is a great resource to let you now what to expect when it comes to your monthly mortgage. Plugging the interest rate and mortgage amount into a simple mortgage calculator is a good way to get started. This type of calculator doesn't include property taxes or other fees like mortgage insurance. For the best estimate on your future mortgage payment, you'll want to try out an advanced mortgage calculator.

Tips to Find an Affordable Home Mortgage

Residents of some rural communities are eligible for affordable, low-interest loans. These loans are available to people who live in low income areas. To see if your neighborhood falls within one of these areas visit the USDA income and property eligibility site. Many areas in Indiana fall within this category.

The Indiana Housing and Community Development Authority also has down payment assistance programs, programs to help you find low interest rates, and opportunities for tax credits. Visit the IHCDA to see what programs are available in your county.

Learn about the steps to home-ownership at Habitat for Humanity. To qualify for a Habitat home, you'll have to attend home owner courses, do several hours of sweat equity, and pass credit and background checks. Once you've completed the process, you'll be given a low-interest loan at monthly payments you can afford. The path to home-ownership is not for the faint of heart. A Habitat partner-family representative will lead you through the process and a qualified loan officer will work with you to insure that your payment is one that you can maintain long term.

Pathstone is another non-profit that focuses on housing counseling. PathStone offers housing education and counseling in locations in New York, Pennsylvania, Indiana, and Puerto Rico. If you're renting, delinquent on a mortgage, or wanting to purchase a new home, this program will guide you on the best steps to move forward. The counselors at Pathstone can even serve as your advocate through the mortgage processes mentioned above.

The Corona Virus was hard on housing. In 2020, the housing market changed and not for the better. However, there are many Covid Relief grants and special programs to help current homeowners bounce back from missed payments and loss of income. For those looking to purchase a new home, the news isn't as friendly. 

The shortage of affordable homes will get worse because the price of homes skyrocketed in 2020 and beyond. However, CNN has announced that the housing market will weaken in 2021. That may be bad for real estate agents, but it's good news for anyone looking to purchase an affordable family home.  If you are still on a tight budget and can't afford to buy a new house, you can temporarily rent apartments near Boston or other large cities while you work toward your long term goals.

Housing predictions for 2022.

Additional Resources:

Government Mortgage Information and Relief -Government guidance & support for homeowners

The Home Loan Expert - Indiana mortgage advice and expertise

How to save for a House - Actionable tips for buying your first home

Recommended Reading:

How to Apply for a Habitat House

The First Time Homeowner's Guide

Tips to Help you Settle into your New Home

Creative Chaos
Creative Chaos

Lora is a homeschooling mom, writer, creator of Kids Creative Chaos, and Director of the Play Connection.