Home Buying Programs for Single Mothers
Free housing grants for single mothers do not exist. Single mothers have to take advantage of other home buying grants or financial programs that are available for everyone.
Single mothers have to face many obstacles throughout their lives and the financial crisis is the primary one.
Home buying programs for single mothers are listed below with the required information.
The housing program offered by the U.S. Government is exclusive to first-time home-buyers.
These programs are open for all types of citizens of the country including single parents.
However, single parents i.e. single mothers can take advantage of other programs to seek additional financial support or price-cut on the home.
Besides first-time home buyers, the home buying programs backed by the U.S. Government attract rural areas, low-income families, and single parents.
Free housing grants for single mothers come as loans. Many organizations provide low-interest loans to single mothers who are willing to buy a new home for themselves and their kids.
Here’s the list of all the available resources for single mothers who can get financial assistance to purchase a new home.
The list contains loan options, government programs, and other grants, which can benefit single mothers buying homes on their own.
Home Buying Programs for Single Mothers
1. Local Housing Authority
The first and the primary source for single mothers to get home buying assistance is visiting the local housing authority.
Since there are no national home buying programs for single mothers, they should first approach the local housing authority to get the desired assistance in purchasing a new home.
The federal programs for buying a new home are different from the state programs and for that reason, a local housing authority can provide them with the best information about the available financial options for them or if there are any suitable programs or grants available.
The Benefits of Visiting The Local Housing Authority
- Information about the state programs to buy a new home
- Information about home buying grants for single mothers
- Loans with 10% or less down-payment
- Low-interest loan resources
- Tax credit facility based on the mortgage
All of these resources and programs are aimed at single parents. These programs usually accept applications with low credit scores and require less documentation work.
2. USDA Loans for Single Parents
The United States Department of Agriculture provides loans to low-income families. The best part about this program is it provides loans to very low-income families in rural areas.
The interest may vary as it depends upon the overall family income of the borrower.
The USDA loans are available for those who do not have a housing facility. People who don’t have a good credit score or no credit score should also get this loan.
People with reasonably good credit scores should get the USDA loan at a reduced interest rate compared to others.
3. Housing Loan from the Department of Housing and Urban Development
The Department of Housing and Urban Development provides different types of loans to those who want to buy a new home.
The first program under the HUD for single mothers is the Housing Choice Vouchers Program. The government offers vouchers to landlords against the elderly, single mothers, etc.
The other such program is Homeownership Vouchers Program, which also comes under the same department.
This program is aimed towards very low-income families who can also dream of becoming the owner of their house. Single mothers can also apply for the same loan to buy a new home.
4. FHA Loans for Single Mothers
The Federal Housing Administration provides FHA Mortgage loans to first home buyers. The FHA loans are backed by the Federal Housing Administration department and provided by private lenders to the needy.
The FHA loans require up to 580 credit scores. If the single mother’s credit score is 580 or above, she can apply for the FHA loans by paying just 3.5% as a down payment for buying a new home.
Single mothers may receive extra benefits from the authority upon asked.
5. VA Loans for Single Mothers
Veteran single mothers have special VA Loans. VA Home Loans are provided by the Federal Department to single mothers of Veterans.
These loans require no down-payment, no credit score, no mortgage insurance. However, the borrower’s credit score must be at least 580 and the DTI ratio is below 50%.
Frequently Asked Questions
Question 1: Are there any Conventional Loans option available for single mothers?
If a single mother has a 5% down-payment for the new home, then she can get a conventional loan. Conventional loans usually ask for at least a 5% down payment.
However, some private entities provide conventional loans to single mothers with just a 3% down-payment.
Question 2: What are Rural Rental Assistance Programs?
Rural Rental Assistance programs are exclusively designed for those who live in rural areas.
Single mothers living in rural areas should get financial assistance from Rural Rental Assistance programs. There are three types of rural rental assistance programs available for single mothers.
- Rural Rental Housing
- Farm Labor Housing and
- Rural Cooperative Housing
Question 3: What is the Bridge of Hope Housing Assistance Program?
The Bridge of Hope Housing Assistance is an exclusive program designed for single mothers and their children to buy their new homes.
The organization assists single mothers with very low income in getting permanent shelter to raise their kids. Just locate the nearby center near your area and visit the center personally to get assistance from them.
The Bottom Line:
Free housing grants for single mothers are not available; however, single mothers can take advantage of the above-listed programs.
The loan facilities, the federal department, the private entities, and many other financing options are available for single mothers with very low incomes.
Single mothers should approach the Local Housing Authority from where they can get the right information about the available programs for them.
Depending on their current income, the department would suggest they go with the preferred loan or finance options.