Single moms who have dealt with financial hardship might find it tough to own a home. A bad credit score, coupled with income in a lower bracket, can dash the dream of owning a home. But that’s where single moms should start looking at financial assistance and other means of owning that home of their dreams.
Single moms can own a home, and here are a few ways they can make it happen:
* FHA assistance. HUD (the U.S. Department of Housing and Urban Development) offers low-interest loans to those who might not be able to obtain financial assistance otherwise. Single moms who don’t qualify for a traditional loan might be able to work out something with FHA in order to obtain a small home that suits their needs.
* The HOME Program offers home loans to single moms and others who fall within specific financial guidelines. Getting financial assistance under this program means a lengthy application process, but in the end, the down payment or other financial assistance is worth the hassle.
* The Housing Choice Voucher Program, sponsored by HUD, varies from state to state. It essentially provides a loan voucher, or a guarantee, that you can obtain a home under certain strict guidelines. The goal is to make certain everyone can afford a home of their own, regardless of income or credit history.
* Mortgage companies. If you don’t fall into the low income category, talk to mortgage companies about special loans and programs for single moms. If you can prove that you are in good financial condition and your credit report is clean, you can probably purchase a home — but it never hurts to explore other options that might bring the cost of your mortgage down, even by a small amount.
* Habitat for Humanity. If you have a stable job but your credit is lacking a bit, turn to Habitat for Humanity about the possibility of home ownership. By giving in “sweat equity” to build your home, you can reduce your costs and wind up with a low-cost, low-interest mortgage that will make your dream of owning a home a reality. Many single moms have taken advantage of this stellar program.
The most important part about home ownership for single moms lies in research. Study every angle! Talk to realtors, mortgage lenders, financial consultants, and anyone else who might have any information you can use.
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