Homestead Loans: Definition, Eligibility & How to Apply

Homestead loans is a term used for loans made available to lower-income households for the purpose of buying houses or bringing substandard housing up to local building codes. They are managed by city and state governments. U.S. Department of Housing and Urban Development offices work towards getting low-income families in houses, which mirrors the purpose of homestead loans and can be a great resource for families looking into this type loan.

Identifying Options

Contact your local county government for information regarding homestead loan options for housing purchases. Since laws vary by locality, the local government is your best resource for options.

Realtors

Realtors, who have fulfulled the training requirements to become members of the National Association of Realtors, should be well versed with the housing laws within the region and properties eligible for homestead loans. The requirements for a homestead loan deal with income and property type. A realtor is an excellent resource for this information and is licensed to process home sales of all types.

Loan Officers

Speak to a loan officer at your bank. Homestead loans are still processed by banks, so the loan officer will have information on income requirements and housing requirements within your area.