You are probably familiar with the volatility of our economy and how it affects the housing market greatly. Building a home as a single mother can be tough on an average income. Perhaps you are purchasing a house as an investment to raise your profits. Either way, you need some foresight to achieve your goal of buying a property as a single parent.
Create A Budget
What are your funds? Before you start looking for a new house, you need to know what your limit is. To do so, you need to take a look at your savings account. Single mothers also have better chances of getting government funds, but it is quite difficult to get good mortgage rates.
Government home loans for single mothers will be a great help to you. Make a list of what you are going to need after purchasing a home. You can’t live in the cold four walls with your child. You need furniture, renovations, and bill money. Therefore, you need to consider those factors when you create the budget.
Can you afford the bills for a large house? Can you fill it with furniture? Can you afford the renovations?
These Arizona property managers claim that real estate brokers and other professionals are available to assist you. You can employ a specialist to lend a hand and provide guidance if you don’t have enough time to organize everything, determine your budget, and set priorities.
You might not be familiar with the neighborhoods, schools and you can avoid scamming and making a big mistake by using help from professionals if you can afford to hire one.
Create a List of Priorities
As a single mom buying a house, you need to sort out your priorities. There is a low housing inventory and a great deal of competition. Therefore you need to be ready to choose between something that’s convenient for you and something that is very necessary.
For example, two houses can fit your budget, one that is closer to schools and another one that is closer to a mall. Although you need to go shopping from time to time, it’s more convenient to have your child go to a school that is located close to your house.
Proximity to schools, playgrounds, and grocery stores will come in handy for a single mother. It’s also crucial to choose a house in a safe and guarded neighborhood. As a single parent, you might not always find time to take your children to school, but when they are old enough, you will feel more comfortable when they have to take a short road in a safe environment.
The list can consist of these items:
- The number of bedrooms and bathrooms
- A yard
- Schools, daycare system
- Nearby hospitals, pediatricians
- Parks, pools, stadiums, etc.
Financing Options For Single Moms Buying a House
Single women are the second most common type of homebuyer after married couples. Single mothers buying homes face a lot of challenging difficulties. However, as a single mother, you can apply for first-time homebuyer grants.
FHA loans can work for single mothers who have two years of steady income, Less than two 30-day late payments to debtors in the last two years, 30% of their gross (before taxes) income available to cover mortgage payments, Monthly debt that does not exceed 43% of their monthly income, and are interested in keeping monthly payments as low as possible.
VA Home Loans
VA home loans are great for single mothers as they include no down payment, have low interest rates, they don’t need prepayment penalties, they provide refinancing of up to 100% of your home value. However, there will be funding fees to pay.
USDA Mortgage Loans
With USDA mortgage loans, there is no down payment required and no prepayment penalty. However, it does come with location restrictions and has income limits.
As a single parent, you might find it difficult to get by. However, anything is possible with the right motivation and the well-being of your children is more than enough. A single mom buying a first house might seem very difficult, however, if you consider the important factors and set out a strategy that works for you and your small family, you will work things out. You just need a well-thought-out plan and a list of priorities. There are multiple financing options for single moms buying houses. Therefore, you will surely find a way to purchase a property that works for you and your children.