What is a common financing option for homebuyers purchasing with low income?

FHA Loans are specifically designed to assist low-income and first-time homebuyers in achieving homeownership. These loans are backed by the Federal Housing Administration, allowing lenders to offer more favorable terms, such as lower down payment requirements and lower credit score thresholds. This makes FHA Loans accessible to individuals who may struggle to qualify for conventional financing due to limited income or credit history.

In contrast, conventional loans tend to require higher credit scores and larger down payments, making them less suited for low-income buyers. Hard money loans are typically short-term, high-interest loans primarily used for real estate investment purposes rather than for traditional home purchases and can be risky. Jumbo loans, while good for financing higher-priced homes, also require strong credit and a significant down payment, which may not be feasible for low-income buyers. Thus, FHA Loans stand out as the most accessible financing option for those with limited income seeking to purchase a home.