An Introduction to Home Loans for Single Mothers

A big part of being a successful single mother involves finding a home for you and your children where you will be able to raise them safely. With this in mind it is well worth your while investigating the various home loans for single mothers that are available as well as considering the various other sources of financial and housing aid for single mothers who are trying to raise a family on their own.

Home Loans for single mothers

Getting a loan to help you finance your home may seem like a great idea, and in many instances it is. As a single mother you are aware of how important it is to provide a good home for your children. Below are some of the home loans for single mothers that you may want to consider.

The Rural Housing Guaranteed Loan

One of the home loans for single mothers that you may wish to consider is the Rural Housing Guaranteed Loan. This is a very strict loan and many people fail to meet the requirements to be eligible for this home loan. Among other criteria it is necessary that you are without satisfactory housing, that you are able to afford mortgage payments and that you must have a good to reasonable credit history. These requirements are not easy for everybody to meet, so it is important that you make sure that you do indeed meet all of these criteria before applying.

The Rural Housing Direct Loan

Another loan that is well worth your consideration is the Rural Housing Direct Loan. This is a program that is available to US citizens living in rural areas who want to construct, renovate, repair or relocate homes. In order to qualify for The Rural Housing Direct Loan you must:

  • Have a low income (50 to 80% of area median) or very low income (below 50% of area median)
  • Be without adequate housing, BUT
  • At the same time you must be able to make the necessary mortgage repayments

The Rural Repair and Rehabilitation Loan and Grant

This loan is for people with a very low income who want to improve their homes in some way. This includes removing safety hazards or even modernizing the home. To qualify you must:

  • Be unable to obtain affordable credit somewhere else
  • Have a very low income (lower than 50% of the area median)
  • Have a real need to make your dwelling safer or more sanitary
  • Be older than 62 years

Mutual Self-Help Loans

This loan is for families that have very low incomes and who are unable to get a home through conventional methods. The idea behind Mutual Self-Help Loans is to help individuals and families build their own homes. Under supervision applicants will build their own homes and help other people who have taken out the Mutual Self-Help Loans to build their homes as well. In the end everyone has a place to stay.

Rural Housing Site Loans

This loan is not given directly to single mothers, but in many ways can still be considered to be one of the many home loans for single mothers that are available. The Rural Housing Site Loans is given to non profit organizations to be used for the purpose of buying land that will be turned into housing developments for low and moderate income families. Consequently, you, as a single mother, may benefit from this loan.

Home grants for single mothers

Although there are many home loans for single mothers available out there it is well worth taking note of the various other options that are also available. This is because you will have to repay a loan, usually with quite a hefty interest, while grants and other sources often do not require repayment. Here are some grant options for you to consider.

Individual Water and Waste Water Grants

One of the grants that you may wish to consider is the Individual Water and Waste Water Grant. This loan provides money to families living in an area that was considered to be a colonia before 1 October 1989. In order to be eligible for this grant you must:

  • Own a home in a colonia
  • Have proof of ownership
  • Must not be in debt to a federal agency

This grant is primarily in existence to help families in these areas connect such things as their water and sewage systems. There are maximum amounts that your family will be eligible for.

Self-Help Technical Assistance Grants

Another grant worth considering if you are looking for a way to house your family are the Self-Help Technical Assistance Grants. Again this grant is not given directly to you as a single mother, but rather to agencies that will then use the money to help families and communities in bad positions.

Technical and Supervisory Assistance Grants

There are also a number of housing grants known as Technical and Supervisory Assistance Grants that may be useful to you. These grants exist to help families find a suitable and safe home to live in or to help families stay in homes they already have if those homes are suitable and safe.

Other options (well worth considering)

Mercy Housing Live in Hope

There are many options out there when it comes to finding home loans for single mothers but Mercy Housing Live in Hope is the largest non-profit housing assistance program that s currently in existence. The main aim of Mercy Housing Live in Hope is to provide housing communities that are affordable for families in need, including single mother families. This foundation aims to help families in need and who lack the financial means to house themselves. Mercy Housing Live in Hope operates on the following principles:

  • Respect – for the dignity of persons,
  • Justice – where persons are treated fairly and impartially, and
  • Mercy – which causes a compassionate response to persons’ needs.

The US Department of Housing and Urban Development (HUD)

When it comes to looking for home assistance then you should definitely check to see what the US Department of Housing and Urban Development (HUD) has to offer you. This is a housing choice voucher program which will provide you with vouchers that you need to get a home under certain circumstances. At HUD you will be able to find the answers to such questions as the following:

  • If I wish to purchase my first home but need help meeting the monthly mortgage and other home ownership expenses, is there a program that will help me?
  • Who can I talk to obtain additional information about this program?
  • Do all PHA’s participate in this program?
  • If I am currently a participant in the Housing Choice Voucher program and receive rental assistance, can I use my voucher to buy a home and receive monthly assistance in meeting home ownership expenses?
  • If I don’t have a rental voucher what do I do?
  • What if the waiting list at the housing agency in my area is closed and the PHA is not accepting applications?
  • If I get on a waiting list, how long do I have to wait?
  • Are there any standards for the home to be purchased under this program?
  • Are PHAs required to offer home ownership vouchers?
  • What families are eligible to apply for home ownership vouchers?
  • What are monthly home ownership expenses?
  • How much financial assistance can PHAs provide in each voucher?
  • What is the total monthly tenant payment?
  • What do I have to pay each month?
  • Do families have to purchase a home in the jurisdiction where the PHA issued the voucher?
  • How long can a family receive assistance under this program?
  • What regulations cover this program

There are several issues surrounding the concept of housing choice vouchers offered by the HUD that are also addressed:

  • What are housing choice vouchers?
  • Am I eligible?
  • How do I apply?
  • Local preferences and waiting list – what are they and how do they affect me?
  • Housing vouchers – how do they function?
  • The rent subsidy
  • Can I move and continue to receive housing choice voucher assistance?
  • Roles – the tenant, the landlord, the housing agency and HUD
  • Tenant’s Obligations
  • Landlord’s Obligation
  • Housing Authority’s Obligations
  • HUD’s Role
  • Additional Information and other subsidy programs

The US Department of Housing and Urban Development (HUD) is aware of the fact that having a safe home for your family is one of your top concerns and aims to help you reach that ideal wherever possible.

USDA Rural Development/Housing & Community Facilities Programs (HCFP)

The USDA Rural Development/Housing & Community Facilities Programs (HCFP) is programs in which you will be able to receive a subsidy that allows you to own your home, rent your home, or repair your home. These programs are aimed at rural Americans.

Housing Finance Agencies (HFA)

There are a number Housing Finance Agencies (HFA) that is also available to you. These agencies come in many shapes and sizes, and you may be able to get home loans for single mothers, grants for single mothers, or other forms of financial aid through them. There are many different options available in each state.

National Low Income Housing Coalition

National Low Income Housing Coalition aims to ensure that homes are provided to all US citizens. This is done through intervening in cases of foreclosure; assisting in disaster recovery should a person’s home have been caught up in some kind of disaster, housing services and federal housing programs.

Tips for getting a home loan

If decide to go the route of getting a home loan, then there are some basic things that you need to consider:

  • How much can you afford? A loan has to be repaid, usually on a monthly basis. You don’t want to be caught up in a situation where you are required to make repayments that you are simply unable to make. In this case you may run into trouble and lose the home you took the loan out for. Before starting then make sure that you have a budget in mind.
  • What are your rights in a loan situation? It is very important that you understand what rights you are entitled to in a loan situation in order to make sure that you are not in any way being cheated in the loan process.
  • Which loan should you choose? Loans are all subtly different from one another so it is very important that you look around carefully and compare all of the options open to you thoroughly before making a decision. Just as you would shop around to find the best deal with any other product, so you should shop around to find the ideal home loan for single mothers that suits your personal needs.
  • What home buying assistance programs are available? As we have explored already there are several different options available when it comes to home buying programs. Make sure you are aware of all of these in order to make the best choice possible in terms of your home loan.
  • Is the lowest rate the best? This is not necessarily the case. A low rate does not necessarily indicate quality and you should be careful about settling for second bets when it comes to the home that you plant to live in with your family.
  • How much of a deposit should you have? If you want to avoid mortgage rate then you need to make sure that you have a ten percent deposit available or more when getting a home loan.

For anyone willing to take the time to find the perfect home loans for single mothers there are plenty of options available. All it takes is a bit of searching.