If you want to own your own home--but your income is too low for a conventional home purchase loan--you still may get approved for a Mortgage Loan if you look for an alternative solution. Even those with a low income and very small down payment can get approved if they're willing to try unconventional loans.

FHA

The Federal Housing Administration (part of the U.S. Department of Housing and Urban Development) offers FHA loans to folks who need a little extra help qualifying for a mortgage. FHA mortgage loans typically require low down payments (usually about 3%) and low closing costs. They're designed to help people achieve the dream of home ownership, so their loan approval criteria tend to be more lenient, making them the perfect loan for folks with a low income. Even if you have less than perfect credit, you may still qualify for an FHA loan. They even have loans available for manufactured or mobile homes.

VA

Veterans Affairs (VA) Loans are available to individuals who served in the United States military (your service time must meet certain criteria) or the unremarried spouse of a veteran who died, became a prisoner or was declared missing in action during service. The Veterans Affairs guarantees the loan, which means it's easier for you to qualify for a mortgage. Moreover, because the VA backs your loan, you may be able to get approved with a smaller down payment, or even no down payment at all.

State/Local Assistance Programs

Various state and local assistance programs exist that can help low income families qualify for a mortgage. The programs are structured to encourage home ownership. In general, you'll usually have to meet income requirements, meaning your salary must be less than a certain amount. The purchase price of your home and the type of home you buy may also have to meet certain guidelines.

Almost any home purchase lender should be able to give you more information about these low income loans and programs, so be sure to ask about them when searching for your mortgage lender.