Life is much more challenging for single parents, but do not let this discourage you from living your dreams. If you are a single parent, you can still own a home. Many assistance programs are dedicated to helping solo parents purchase a home despite the usual obstacles that might prevent them from acquiring one, such as a modest income or a poor credit history.
How to Buy a Home: Financial Assistance Options for Single Parents
If you are a single parent planning to get your property in the next few months, here are the things you should know.
- State and Local Programs. The US government always seeks to provide opportunities to people of different backgrounds. Home assistance programs are there for people who need financial help. You can find these programs under your state or your local government. Suppose there are no specific programs intended for single parents. In that case, you can still apply for other programs, such as assistance for first-time homebuyers, low-income homebuyers, or rural-area homebuyers. Check the details of the programs they offer in your state by checking the US Department of Housing and Urban Development (HUD) website.
- The Federal Housing Authority’s Home Loans. A popular option for first-time homebuyers is the FHA loan. It can benefit couples and even singles needing financial assistance. The Federal Housing Authority (FHA) is a government-insured organization that guarantees loans from private lenders. This allows lenders to ask for low down payments, which lets them safely offer loans to people with low credit scores. Fortunately, it is relatively easy to qualify for their loan programs. You could also get low monthly mortgage insurance fees if you successfully secure a home loan under their program.
- Mortgage Credit Certificates. Mortgage Credit Certificates or MCCs are not loan products. Instead, they are documents that a lender gives to the borrower. This document allows the borrower to convert a portion of the mortgage’s interest into a non-refundable tax credit. It means that homebuyers can offset some of their house interest expenses and lower their tax liability in the process. When this happens, you get more savings from your tax. You can use this extra money for other expenses or as additional payment for your monthly mortgage.
- Individual Development Accounts (IDA). Community organizations usually provide this option. IDA is a type of savings account that you can use to save for future investments, such as home purchases, tuition, or business funds. Its goal is to help individuals, particularly those in the low-income category, build assets, become financially stable, and be self-sufficient in the long run. Another way IDAs can help you with home purchases is by providing your down payment. They could do so by matching your savings to as high as an 8:1 ratio, though the ratio depends on the organization.
Buy a Home in Phoenix with Desert Springs Mortgage
Raising kids and paying for rent every month is challenging. Limited income could discourage single parents from buying a home. However, always remember that purchasing a property is never impossible for anyone. You only need to find the right loan and assistance program that fits your needs.
If you are looking for home loan options in Phoenix, give us a call at (623) 432-1309. At Desert Springs Mortgage, we can connect you with the ideal loan provider in the area. Our loan officers will guide you through the mortgage process and make sure you make informed financial decisions.