Are there home loans for single parents?
There aren’t necessarily ‘special’ home loans for single parents. However, there are several mortgage programs that meet the typical needs of single moms and dads.
These loans could help you get around the problem of lower income when buying as a single parent.
There are also assistance programs that can offer money toward your down payment, as well as homebuyer education programs and one-on-one counseling to guide you through the home buying process.
All in all, buying a home as a single parent may be easier than you think.
Verify your home buying eligibility. Start here (Nov 10th, 2021)
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Can I buy a home as a single mom or dad?
Of course, there’s no such thing as a ‘typical’ single parent. Some are wealthy, while many are working hard to juggle both child care and their personal finances.
If money’s not an issue for you, and you have a 20% down payment for the home you wish to buy, you can easily get a conventional mortgage (one not backed by the government), provided you’re reasonably creditworthy and don’t have too much existing debt.
Your next step is to find a lender you like the look of and get preapproved for your mortgage. And you don’t need to finish this article.
But life’s not like that for most single moms and dads. You might find that money’s often tight and that your credit score takes occasional hits.
Still, you, too, could become a homeowner.
Home buying requirements for single parents
Just be aware that every lender will want to be sure you can comfortably afford your new mortgage payments and the financial burdens that come with homeownership.
Lenders calculate that affordability in the context of your current monthly budget, using something called your debt-to-income ratio (DTI).
DTI compares your monthly, pre-tax income against your ongoing debts — including your future home loan — to make sure you have enough cash flow to support a mortgage payment.
As importantly, you’ll need an OK credit score, which could be anywhere from 580 to 620 or higher depending on the minimum credit score requirements for the loan program you choose.
Verify your mortgage eligibility. Start here (Nov 10th, 2021)
The best mortgage programs for single parents
If money’s a little tighter on your single income, you might be looking for a mortgage program that has looser eligibility requirements.
Luckily, many common loan programs are very flexible in this regard. Home buyers can choose from a wide range of low and even no-down-payment home loans depending on their needs.
Here are a few …….