Can Low Income Earners Buy Homes?

Everyone has to qualify on the 40% ratio.  All payments made (like total mortgage payments, taxes, heating, and any other payments) cannot be more than 40% of your gross yearly earnings.  So, if someone was on a pension, or permanently disabled, as long as they have good credit and falls within the 40% ratios, they can buy a home.

"RRAP" is a program for low income people who own homes, but can't afford to fix up a major item, such as a furnace, water heater etc.  The applicant is already a home owner and applies directly to CMHC.
 
"Purchase Plus Improvements" is a CMHC program that enables the purchaser to buy a home with money added for renovations.  For example, buyer wants a $200,000 home, but it needs a new kitchen, furnace, windows, or whatever. He has to get quotes for the improvements from reputable contractors.  Say the quotes come in at $10,000.  The mortgage is then $200,000 plus $10,000; less a minimum 5% down on the $210,000.  On closing, the mortgage company holds back the $10,000 until the renovations are done and inspected by a qualified appraiser.  The buyer must have access to $10,000 to get the work done and inspected.  Then when completed, the $10,000 costs are reimbursed to the buyer. 

First time home buyers are Land Transfer Tax exempt.

Risk factors:  bankruptcy history, bad credit, unemployed, on social assistance or unemployment.

As your real estate professional, we have access to various reputable companies who provide mortgage funding and financing opportunities.  Century 21 ~ "Connected to More"
 

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Diane Walker

Diane Walker

Broker
CENTURY 21 Today Realty Ltd., Brokerage*
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