Low Income Loans

Apply for fast, flexible funding without affecting your credit score.

Check Your Eligibility

This won't affect your credit score.

What Is a Low Income Loan?

The phrase “low income loan” applies to a variety of financing options for those whose income falls below certain levels, such as the average or median income of their community.

Many low income loans are backed by government-sponsored programs and might be used to help pay for college, buy a home, start a business or refinance existing debt. One common example is a Federal Housing Administration (FHA) loan, which helps low income individuals buy a home or refinance a mortgage. However, some private lenders also offer low income loans.

Who Qualifies?

Government-backed, low income loans are typically restricted to those with low income levels. In determining eligibility, a borrower’s income is compared to that of the median income for their area — often using statistics compiled by the Department of Housing and Urban Development (HUD).

For example, if the median income for an area is $40,000 and borrowers make less than this per year, they could be considered “low income.” Some lenders, states and programs may set the “low income” threshold at levels greater or less than the median income level.

Features of Low Income Loans

Not only do lenders compare a borrower’s income to that of their community, they also analyze an applicant’s ability to pay back the loan. The debt-to-income (DTI) ratio is often used to make this determination.

Here are some key terms you’ll need to know when considering low income loans:

Income qualification: Some lenders may limit their risk by capping DTI levels at 25% of a borrower’s gross income. To accommodate lower income levels, lenders may increase that limit to 30% or even 40%.
Loan amount: Some lenders have minimum loan requirements that are too high for low income borrowers. By reducing the amount required for low income loans, these people might be able to qualify. For example, some lenders may set a minimum loan amount of $40,000. A borrower who can only qualify for a $30,000 loan wouldn’t meet that minimum requirement unless the lender reduces this limit to meet the borrower’s needs.
Rates: Lower interest rates, typically available through low income loans, make them more affordable to borrowers with lower incomes.
Terms: Increasing the loan repayment period, also known as the term, reduces a borrower’s minimum monthly payment.
Guarantees: Many low income loans require additional guarantees that a loan will be repaid. This often involves a co-signer, who agrees to pay back the loan if the borrower fails to do so. In the case of FHA, VA and similar government-backed loans, it’s the federal government that provides certain guarantees to the lender.
Direct assistance: Some state and federal programs provide grants and down payment funds that low income borrowers can use to reduce the amount they need to borrow and their monthly payment requirements.

Get a NetCredit Personal Loan or Line of Credit

Although NetCredit does not specifically arrange “low income loans,” we understand that customers are more than just credit scores. When you apply for a NetCredit personal loan or line of credit, your eligibility will be determined by your broader financial picture - not just your credit score. Want to see how much you can qualify for? Just check your eligibility to find out in a few short minutes. Have more questions about our online loan process? Check out our FAQ page — or contact us by phone or email.

Trusted by thousands of people like you.

Check Your Eligibility

This won't affect your credit score.