Are you a single parent who dreams of owning a home but nervous that you’ll encounter too many challenges? We’ve got good news for you! There are home buying assistance programs that can help you purchase a home.
If you’re a single mom or dad who wants to buy a house, we’re here to list some loan programs that might work best for you.
Best Loan Programs for Single Moms and Dads
Single parenthood often means having a tighter budget, so a loan program with looser eligibility requirements is typically your best bet. Fortunately, various loan programs are designed for lower-income homebuyers –many of which offer low down-payment options. Here are some of the best loans programs to help fund single parents’ home-buying journey:- FHA Loans: Federal Housing Administration (FHA) loans are government-insured and fairly easy to qualify for. First-time home buyers are usually attracted to this type of loan because of its low down payment of 3.5%, low monthly loan insurance, and availability to individuals with credit scores as low as 500.
- VA Loans: If you’re a veteran, active US military member, or an eligible surviving spouse, a VA loan could be the best choice for your new home. VA loans offer extensive money-saving benefits and services that first-time borrowers will find appealing, such as no mortgage insurance, zero down payment, low-interest rates, and more. This means you can purchase a house with little to no savings with zero penalties. Credit score requirements differ per lender and range from 580-660. This is one of the best loans available if you’re eligible for one.
- USDA Loans: The U.S. Department of Agriculture, also known as USDA, offers a variety of loans to help single parents with low and moderate incomes in rural areas. But, “rural” can be a loose term because many ZIP codes in the U.S. qualify as rural, which includes many regions surrounding popular, urbanized cities. USDA loans have zero down payment requirements, low-interest rates, and the mortgage insurance premium is lower than FHA loans. USDA loans have income caps, so ask your lender to check if your income meets the qualifications.
- Conventional Loans: Conventional loans are very common. This type of loan is best suited for salaried employees or consistent earners with a good credit score and some savings. Conventional loans can offer down payments as low as 3% if it’s your first time purchasing a house.
Which Loan Program is the Best for You?
It depends. The best low-income loans for single parents vary based on your circumstance and prospective property. In order to get the best deal available, you should consult a mortgage professional to help weigh your options.
Source: lonemortgage.com
Image: pixabay.com, unsplash.com
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