There are about 13.6 million single-parent households in the United States. For many of those households, the thought of becoming a homeowner feels like little more than a pipe dream. With increasing property prices and changing mortgage requirements, becoming a first-time homebuyer when you’re juggling the responsibilities of work and parenting can feel daunting. Luckily, there are numerous first-time homebuyer’s assistance programs tailored to the unique needs of single-parent households. Here’s what you need to know about these programs.
State-Sponsored First-Time Homebuyer’s Assistance
Almost every state offers certain first-time homebuyer’s assistance programs, but the exact details of those programs vary from state to state. At minimum, you should be able to find down payment assistance grants and low-interest loans to help you get into the home of your dreams. Some states also offer courses to help you better understand the responsibilities of homeownership and those programs allow you to take advantage of certain local incentives. Talk with your mortgage company or real estate agent about the programs available in your area.
FHA Loan Program
Arguably, the biggest challenge for single-parent households is coming up with the traditional 20% down payment. Without it, qualifying for a mortgage won’t be easy. That’s where the FHA loan program can help. These loans are part of a nationwide first-time homebuyer’s assistance program. They allow you to finance the full purchase price of your house, eliminating the 20% down payment requirement.
Even better, the loans are easier to qualify for. As long as you have a reliable source of income and a credit score of 650 or higher, you should be able to qualify for some amount of financing. Keep in mind that you’ll still want to shop around for FHA loans if you choose to go this route.
It’s the individual lenders that determine the interest rate they offer you on the loan, not the government. This means you’ll want to get quotes from several lenders before you make a decision. Otherwise, you risk paying more on your loan than you deserve to.
Get Help Today
Navigating first-time homebuyer’s assistance programs as a single parent isn’t simple. It’s best to ask for help early on in the process so you can better take advantage of incentives. Contact the team at Mortgage Solutions Financial and let our experienced loan officers help you explore your options. Whether you’re looking to buy your first home in a new city or want to transition to country living, we’re here to help.