Having to own a house can be a dream come true. As a single mother, however, achieving that dream may not be a walk in the park. Truth be told, being a single mother can be accompanied by financial constraints. More often than not, single moms depend solely on a single source of income. And even if someone’s paying child support, it may not be enough to get you what you’d call your dream house. Read on to find out about single mother programs for buying a house.
Raising the children all by themselves, single moms can have it rough. It can be tough to handle the entire bills single handedly. In addition to the financial constraints, mortgage lending standards can be restrictive and harsh to single parents. This was especially the case in the recent past where households with a dual income were favored more. This was because dual income raises the credit scores.
But despite being a single mom, all is not doom. There are numerous programs that are geared to helping single mothers with meager earnings and savings, secure a mortgage. Below are some examples of single mother programs for buying a home.
Single Mother Programs for Buying a House – Recommendations
1) HUD Home Search
This is a portal that has a lot of properties that have undergone foreclosure. They’re available at very affordable prices. Most of these homes are sold on a bidding basis like an auction of sorts. Through the site, potential buyers get to place their bids. Proceeds from these sales will then be used by the seller to recover all the losses incurred from the foreclosure process. The major advantage of buying a home from HUD is that HUD will pay all the closing costs. This will be necessary to qualify you for any financial assistance if there raises a need for repairs.
Site URL: https://is.gd/QtlX2W
Mailing Address: 451 7th Street S.W., Washington, DC 20410
Pricing Info: Variable
Business Hours: 8:00 a.m. to 8:00 p.m. ET, Monday – Friday
Contact Phone: (202) 708-1112
Contact Link: https://is.gd/7uFxil
2) USDA Loans
This is a government program that has helped a lot of single mothers to own a home. The United States Department of Agriculture Loan is geared to helping the low to moderate income earning single mothers. Specifically, they assist their beneficiaries to improve, rehabilitate or build a home in rural areas. There are also requirements for the location. The beauty of this program is that it has a 90 percent loan guarantee. Nonetheless, there are a few specific income requirements to be met. For instance, you should at least have a credit score of 620 to qualify for this loan. Visit the USDA website to learn more and also know if you qualify.
Site URL: https://is.gd/Bxrucl
Mailing Address: 1400 Independence Avenue, S.W. Washington, DC 20250
Pricing Info: Variable
Contact Phone: (202) 720-2791 / (800) 414-1226
Contact Link: https://is.gd/ra6lXI
3) Individual Development Account
This is an account that is purposely designed to help anyone with a low income. For a single mother, it can be a great tool when it comes to acquiring an asset like a home. Apart from helping you to buy a home, after being approved, you get trained on the issues pertaining to the purchasing process and you are also offered courses on budgeting. However, to qualify, you must meet the following:
• Minimum income requirements
• Contribute to the IDA savings from an earned income
• Have a minimal outstanding debt or be debt free
• At least, have assets exceeding $5000
The collaborations of financial institutions and non-profit organizations have made these accounts be a success. You can check for any of these programs near you to learn more.
Site URL: https://is.gd/Zp9HKR
Mailing Address: Social Security Administration, Office of Public Inquiries, 1100 West High Rise, 6401, Security Blvd. Baltimore, MD 21235
Pricing Info: Variable
Business Hours: 7 a.m. to 7 p.m
Contact Phone: (800) 772-1213
Contact Link: https://is.gd/AgZlAN
4) Insured FHA Loans
To own a new home, it would require you to pay up a down payment of 20%. This is by far unrealistic to a single mother with a low income. With FHA loans, you are allowed to only have 3.4% the purchasing cost. In some cases, you even get assistance with the closing costs. While lenders look for a credit score of 620+, you only need a 580 to qualify for an FHA loan. These loans have been insured by the Federal Housing Administration, an agency within the US Department of Housing and Urban Development. The interest rates are quite manageable, making it more affordable to own a home.
Statistics have shown that single mothers have harder times securing a mortgage. The above ‘single mother programs for buying a house’ have made home ownership a reality to many single moms. One of the best places to start, however, is to visit your local housing authority. They will advise you on the different housing programs, loans and grants that are best suited for your situation and needs.