Mortgage And Housing Options For Single Parents

Getting a mortgage for single parents is not as simple as it is for others. For several reasons, it can be quite difficult for single parents to obtain a mortgage that will let them own their own home. However, there are programs in place that are tailored for individuals such as single parents who need a little extra help to realize their dream of homeownership.

Obstacles To A Mortgage For Single Parents

Having only one income for the entire household is one of the major obstacles that single parents face when they are seeking a mortgage. When banks receive their application, the strict guidelines that they have can often not be met with the one income. Another common obstacle for obtaining a mortgage for single parents is their credit score. The majority of single parents have fair to poor credit due to debts and credit issues that they were left with when their partner left or passed away. A lower credit score can also make it difficult to obtain a mortgage or to obtain rates and payments that they can afford.

Most single parents also run into trouble when they try to gather enough money for the down payment on a home. It can be difficult for a single parent to save even a few thousand dollars. If they require 10-20 thousand for an average down payment amount, they can often be out of the mortgage game before they even begin. With all of these obstacles, it is no surprise that so many single parents never realize their dream of owning a home.

Solutions To A Mortgage For Single Parents

Although many obstacles can stand in the way of a single parent when they are trying to get a mortgage, many solutions can be implemented to help them get in a home as soon as possible.

Down payment assistance grants are one of the most useful solutions that can help a single parent. These programs are put out by the government and local agencies and allow the single parent to get between 5 and 20 thousand dollars for a down payment on a home. The money is given in the form of a no-interest loan which must be repaid when the home is no longer occupied by them, sold, or when they have paid it off or passed away.

Low-interest loans are another solution that helps to enable single parents to get a mortgage that they can afford. Low credit scores and poor credit history can cause a single parent to qualify for only the highest interest rates. However, first-time homebuyers and other such programs allow those who qualify to obtain lower interest mortgages even if their credit isn’t the best.

A mortgage for single parents is not an impossible thing to obtain. There are many obstacles along the way, but single parents can get the terms they want and assistance they need if they take the time to seek out the available help.