Mortgages for single moms – a discussion of hurdles and solutions
Are you a first time home buyer single mom?
Mortgages for single moms can help families with one income achieve the dream of owning a home. But not all mortgages are equally good. Some are better when compared to others and that is exactly what our article here is going to deal with.
The first time home buyer loans:
Mortgage lenders know the troubles almost every first time home buyer goes through while he or she is in the process of getting a mortgage. One of the biggest barriers will be paying the down payment and other closing costs in order to seal the deal. Fortunately, there is a way out for people, especially the low income and moderate income families, to become homeowners. All you need to look into are the first time home buyer loans.
These loans come with very low or even zero downpayment which means you do not have to rack your brain thinking of how to come up with a 20 percent downpayment. Having said that, it is most important to note that there are downsides with resorting to these kind of loans. One of the big cons is that since the downpayment required is low, and that means the lender is going to face a huge risk, private mortgage insurance becomes mandatory. Of course, you can stop the PMI once you have reached 20 percent equity in your home. But up until then, the insurance payments have to be made without fail. And that is not the only one downside associated with a first time home buyer mortgage. Another disadvantage is that these home buyer programs,as mentioned earlier, are primarily aimed at assisting the lower and moderate income families to buy a home. Hence, the lenders usually stick with a lower value mortgage, and that could mean if you are trying to buy a high end home, it will be virtually impossible.
FHA loan for single mothers:
Have you already talked to several lenders but got rejected due to your bad credit history? In that case, FHA loan is just what the doctor ordered for your specific case. As these loans are insured by the FHA – federal housing administration, the lenders will be much more inclined towards giving you the loan despite seeing a poor credit score. Besides the easy approval, interest rate, closing costs and the down payment will be quite low as opposed to the traditional mortgages. If you are still confused, we suggest you visit the official HUD page – FHA for first time home buyers
Are there any special homebuying programs for the single moms:
We hate to say it but the answer is “No”. On the bright side, there are some special programs from the HUD and they are as follows:
1. Good Neighbor Next Door – if you work as a teacher or a firefighter, we urge you to look into this,
2. Hurricane Evacuees discounted sales,
3. Homeownership for public housing residents
4. Indian Home Loan Guarantee Program
To learn details about each of these programs, visit the official HUD page – Special programs
Still have difficulty taking a step forward?
Not surprising at all that you are having a lot of hardships going ahead with taking the mortgage. Buying a home is certainly a huge step for anybody, and fortunately, you can get free advice from a few agencies in your area. Housing Counseling Programs could help you out free of cost. You can get free or very low cost counsel from one of the housing counseling agency in your area. The agency needs to be participating in the housing program in order to take advantage of the same. Make sure to look for one such agency nearby – or call (800) 569-4287 to find out. As an alternative, you can also find one online here:search now
Downpayment grants or gifts:
There are a couple of downpayment assistance programs which might be of great help in case you are not able to come up with any money whatsoever for the closing costs. There is no need for taking the money out of your retirement account just to make the downpayment on a home. Get started here:link. Also look into the downpayment gift programs in case you are not aware of it already. Finding a credible and reputed organization is most vital after taking a decision to use the gift programs.