home loan programs for low income individuals
Can someone explain to me that in this day and age of the banks tightening their belts regarding who they will lend money to- what type of programs are out there that would lend a single mother of 2 kids with limited income (she makes $9 an hour and does not always get 40 hours per week. She has been at her job a little over a year but is looking for a new job so she can afford a house) She had less than $1000 to use as a down payment. How does one with such low income and does not have excellent credit (she filed bankruptcy about 9 years ago and while she doesn't have any large debt (pays cash for older car etc) she hasn't established new credit ( no credit cards or bank loans). how does someone with this history obtain a loan for $86,000 to buy a fixer upper? She was handed the keys last week. This was not a foreclosure.
I know that USDA has programs for people who are low-income that guarantee the loan and also assist with a small portion of a down payment. But there is NO possible way this person is going to be able to afford her $700 + a month house payment on her income. She receives no addtional income (child support etc) either. I'm just curious what types of programs are out there.