The Department of Housing and Urban Development (HUD) has a Housing Choice Voucher (Section 8) homeownership program. In certain areas, you can use your monthly rental voucher to help pay a monthly mortgage instead.
To bridge the gap between your income and rising home prices, look into secondary assistance options:
Groups like Habitat for Humanity or local community land trusts frequently assist individuals on fixed incomes to secure safe, affordable housing. Exceptions to SSI income and resource limits | SSA buying a home on social security
If you are a veteran or active-duty service member receiving Social Security, you may qualify for a VA loan. These typically require 0% down and feature no monthly mortgage insurance.
Because Social Security retirement and disability benefits are often tax-exempt, many lenders will "gross up" this income. This means they may calculate your debt-to-income (DTI) ratio as if you earned up to 25% more than your actual benefit amount, making it easier for you to qualify for a higher loan amount. The Department of Housing and Urban Development (HUD)
For those looking to buy in designated rural and some suburban areas, the U.S. Department of Agriculture offers 100% financing (0% down) for low-to-moderate-income buyers.
Both offer conventional loan programs with down payments as low as 3% for qualified first-time buyers or low-income applicants. ⚠️ SSI vs. SSDI: Understanding Asset Limits Exceptions to SSI income and resource limits |
You do not need a traditional 20% down payment to purchase a home. Several government-backed loan programs feature low down payment requirements and flexible credit guidelines: