Life is unexpected, and certain trends remind people of how unexpected things can be; for example, the number of single parents is rising. These parents want to do their best for their children, which leads to purchasing a home as a single parent. The following are a few tips to help a single parent who is trying to find a home.
Looking for Federal Assistance
Single parents, especially those struggling to make ends meet, could find assistance by simply knowing where to look. The Federal Housing Authority in this country offers FHA home loans. Now, it is important to point out that these home loans are only available for people purchasing their first home.
The loan itself also comes with a few prerequisites that can change depending on the loan requested. If a single parent wants a 96.5 percent loan, then a minimum credit score of 580 is usually required as well as putting down a 3.5 percent downpayment.
Look for State and Local Programs
There are state and local government programs that were made to help people purchase their homes. This help can be provided to couples and single parents like you who are simply trying to take that next step in life.
Of course, some of these programs were developed to help low or moderate-income earners, so some income requirements will have to be met. It should be noted that homes that are purchased with this kind of assistance will probably not appreciate much, but this home is a good starting point for any single parent trying to do better for his or her children.
Assistance With Additional Purchase Costs
There are two things a single parent has to worry about regarding the purchase of a home in addition to everything else. The first thing is to come up with a good down payment and the second is to figure out a way to pay for all the closing costs. Most assistant programs do not really help with these expenses, which is the reason single parents have to take another path.
Single parents that do not make much money can use IDAs or individual development accounts that are only available to families that do not make more than 200 percent of the Federal Income level, which changes from time to time. This saving program helps match an individual’s savings account with ratios as high as 8:1 though that can change, too. A single parent’s savings account can rise astronomically if this parent qualifies for this kind of assistance.
Shopping Around for a Good Rate is Vital
Yes, the time of a single parent is usually stretched thin, so the idea of spending hours searching for the best mortgage rate sounds impossible, but it is vital. Finding the very best rate including options from private money lenders San Francisco allows a single parent to pay a reasonable amount in the long run, and most single parents know how important every penny is for a growing family.
Thankfully, searching for a good mortgage rate does not have to be too hard since there are good online tools, such as Habito’s mortgage calculator that helps cut down research time. Most of the online tools are relatively easy to understand, so it should be easy to use even for first-time home buyers.
Single parents who want to be homeowners have a lot of work to do, but that does not mean it is impossible. Perseverance and patience are things that single parents are already experts in, so finding a home, no matter how long it takes, shouldn’t too hard.0