The best low income mortgage loans of 2026

Homeownership is more expensive than ever: In nearly half the country, the median household income isn't enough for a three-bedroom house.

For low-income households, defined as those earning less than 80% of the area median income (AMI), the situation can feel even more bleak.

Fortunately, there are lenders that tailor mortgages specifically for lower-income homebuyers or those who belong to historically underserved communities.

CNBC Select analyzed dozens of lenders to pick the best for low-income homebuyers. (See our methodology for more on how we made our picks.)

Area median income, or AMI, is a benchmark established by the U.S. Department of Housing and Urban Development (HUD) that represents the midpoint of a metropolitan area's income distribution, with half of households earning more than the median and half earning less than it. 

According to HUD, low income is the equivalent of 80% of AMI or less, while a very low income is 50% or less. Less than 30% of AMI, meanwhile, is considered an extremely low income.

Though not formal HUD designations, 81-120% of the AMI is often considered moderate income, while 121-165% of AMI is middle income. Above 165% of AMI is generally considered high income

Who's this for? ONE+ by Rocket Mortgage is available to borrowers earning 80% or less of the area median income (AMI) with a credit score of 620 or higher. It only requires borrowers to put down between 1% and 2.99%, and Rocket Mortgage will contribute an additional 2%.

Standout features: If you buy your home through the lender's real estate division, Rocket Homes, you can receive 1.25% of the loan amount as a closing credit. You can also earn Rocket Rewards, which provide closing cost credits for completing qualifying activities. 

 Who's this for? Bank of America's Community Homeownership Commitment program is a 3% down payment mortgage for borrowers earning 80% of AMI or less. It includes up to $17,000 in grants toward a down payment and closing costs.

Standout features: Existing Bank of America customers can receive up to $600 to offset their origination fee, which can be as much as 1.0% of the loan amount.

Who's this for? Borrowers typically need 3.5% down to qualify for a government-backed FHA mortgage, but Guild Mortgage's Zero Down program shrinks that to 0%. It combines a standard FHA loan with a second mortgage to cover the down payment and closing costs. Best of all, there's no income cap.

Guild also offers income-dependent assistance, including the 1% Down mortgage, which provides up to $5,000 in lender assistance for borrowers making 80% or less of AMI in their region.

Standout features: Guild Gateway to Homeownership Assistance provides up to $5,000 in lender credits toward closing costs for homebuyers in designated census tracts in Dallas, Phoenix, St. Louis and Columbia, South Carolina. The program can be paired with conventional, FHA or VA financing.

Who's this for? Chase Bank's DreaMaker loan is a conventional 3% mortgage for borrowers who make 80% AMI or live in one of 15 markets, including Atlanta, Dallas, Los Angeles, Miami, New York City and Washington D.C.

Standout features: Chase provides eligible homebuyers with $5,000 if it misses the scheduled closing deadline. 

Who's this for? While most income-restricted mortgages are for borrowers earning 80% of AMI, New American Funding approves those who earn up to 100% of AMI for its Pathway to Homeownership program, which pairs a conventional 3% down mortgage and $6,000 in down payment assistance.

Standout features: NFT offers an all-cash purchase option, which can give buyers an edge in a competitive housing market.

HUD defines a low-income household as earning 80% or less of the AMI in their metropolitan area.

AMI varies based on family size and location: A family of four in Yazoo City, Mississippi, can earn up to $37,600 (80% of Yazoo City's AMI) and still be considered low income. In New York City, however, a family of four could earn as much as $129,600 and still be at 80% of AMI.

Read more: What is down payment assistance?

Mortgage lenders typically base income-based loans on HUD's definition. You can find the AMI in your area by typing your ZIP code into Fannie Mae's AMI lookup tool.

Some lenders reserve certain products for individuals with "very low" (up to 50% of Area Median Income, or AMI) or "extremely low" (up to 30% of AMI) income, while others accept applicants making up to 100% of AMI, which HUD considers "moderate income."

Some financing isn't based on income at all. Lenders may consider census tract information to target historically underserved communities.

You can determine how much you can spend on a house by looking at your monthly housing budget, which HUD says should be no more than 30% of your gross monthly income. (That includes mortgage/rent payments, property taxes, home insurance, utilities and other expenses.)

Someone earning $100,000 a year — or roughly $8,333 a month — should spend no more than about $2,500 a month on housing.

To see if a house is within your budget, plug the list price into our mortgage calculator below. If the monthly payments on it are less than 30% of your income, it's probably affordable. If they're more, it's likely beyond your budget.

At CNBC Select, our mission is to deliver high-quality service journalism and comprehensive consumer advice to our readers, enabling them to make informed financial decisions. Every mortgage review is based on rigorous reporting by our team of expert writers and editors, who possess extensive knowledge of mortgage products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content independently of our commercial team and any outside third parties. We pride ourselves on maintaining high journalistic standards and ethics.

CNBC Select analyzed dozens of banks, credit unions and online lenders to determine which are the best for low-income homebuyers. We focused on the following features:

Low-income homebuyer programs: We analyzed lenders' income- and census tract-restricted products designed for individuals with low incomes or those residing in historically underserved communities.

Loan availability: The lenders we chose offered mortgages in all or most states.

Closing timeline: We gave more weight to lenders with shorter-than-average closing times or that guaranteed on-time closing.

Fees: The mortgage process includes origination, application and underwriting fees, as well as charges for appraisals, title insurance, attorneys and other closing costs. When possible, we noted if a lender had lower fees, discounts or waived certain fees.

Customer service: We gave more weight to lenders that scored highly on J.D. Power's mortgage origination and servicing surveys. We also noted if they had robust customer service phone hours and a website with an online chat feature and educational resources.

We also considered CNBC Select audience data when available, such as general demographics and engagement with our content and tools.

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