Determining if you qualify as a low-income household involves understanding the Area Median Income (AMI) as defined by the U.S. Department of Housing and Urban Development (HUD). A low-income household is one that earns up to 80% of the AMI, which varies by location and family size. To find the AMI for your area, you can use tools like Fannie Mae's AMI lookup. The article details various income bands, including extremely low, very low, and moderate income levels, providing examples like a household of four in Manhattan earning up to $124,240 qualifying for low-income mortgages. It also outlines mortgage options tailored for low-income borrowers, such as community mortgage programs from lenders like Rocket Mortgage, Guild Mortgage, and Chase Bank, which offer low down payment options and grants. Additionally, it discusses down payment assistance programs and government-backed loans that can help low-income individuals achieve homeownership.
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