Achieve Your Dream of Homeownership

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Homeownership and Finance

If you're a young adult, you may think that owning your own home is beyond your reach. But homeownership can be an affordable option even with limited savings and a short credit history. Learn how with a new, free package of publications from HUD and the Federal Citizen Information Center.

Because buying a home is probably the largest purchase you'll ever make, it requires careful financial planning and readiness. Before you begin looking, you should evaluate your current financial situation. Good credit, a steady source of income, and few outstanding long-term debts are good indicators that you're ready to become a homeowner.

The next step is to obtain financing. Without the savings for a large downpayment, you can apply for HUD's Federal Housing Administration (FHA) mortgage insurance, which is for low- and moderate- income individuals and families. FHA mortgage loans enable you to make a low downpayment and get a mortgage loan for the balance of the purchase price.


The FHA mortgage loan is made by a HUD-approved lender such as a bank, mortgage company, or credit union. It's a good idea to shop around for the best FHA-insured loan, since prices and features (interest rate, discount points, closing costs, and other fees) can vary from one lender to another. Once your loan is approved, FHA will insure the loan and pay the lender if you default on the mortgage.

The final step is to go house hunting. If you find a home that's a "fixer-upper," HUD's Section 203(k) loan program can help turn it into your dream home. This loan allows you to finance the purchase of a house and include the cost of needed repairs through a single mortgage. Find out more about FHA mortgage insurance and Section 203(k) loans in this useful package of publications.

Achieve your dream with the free Homeownership package. Visit to place your order online or to read or print out this and hundreds of other federal publications for free.

Call toll-free 1 (888) 8 PUEBLO. That's 1 (888) 878-3256, weekdays 8 a.m. to 8 p.m. Eastern Time and ask for Homeownership.