Help for Low-Income Homeowners
Low-income status shouldn't prevent you from doing whatever is necessary to own or keep your home. You should seek help regarding home financing if you're unsure of the next steps you should take. A number of online, community and national organizations offer help to both existing and prospective low-income homeowners.
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Education
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One of the first sources of help you should seek as a low-income homeowner is freely available education on mortgage loans. Learn all about the process of financing a home purchase. If you're having trouble making mortgage payments, learn about what happens when you default. Use online learning resources like the Mortgage Professor and the Home Buying Institue websites to get help with your mortgage issue.
Counseling
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If you're a low-income homeowner experiencing issues paying your home loan, call a credit or debt counseling service before you take drastic measures. A credit counseling service specializes in providing advice and guidance to homeowners who are trying to avoid foreclosure or just trying to adjust their budgets to stay on track with payments. The National Foundation for Credit Counseling (NFCC) is a national organization that helps consumers, including low-income homeowners, find ways to stay in their homes.
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IDAs
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If you're trying to gather financing to buy a home or pay bills associated with your home, look for a community program that sponsors IDAs (Individual Development Accounts). Start an account for six months or more --- the community program often matches the funds you save. You may have to attend classes in order to establish the account and receive matching funds from the program.
Investigate Tax Credits
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As a low-income homeowner, it's also important to take advantage of all applicable tax credits and benefits available. For instance, if you've just purchased your home in the previous year, you may be eligible for a first time homebuyer's tax credit, which could provide you with extra funds needed to take care of home costs. You can also deduct the costs of mortgage interest and property taxes on Form 1040 Schedule A (Itemized Deductions). The existence and amount of tax credits (and deductions) vary depending on the year and situation of the homeowner. Read the IRS publications released for each tax year to identify all eligible benefits.
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