Purchasing a new home can be tough thing to do, especially if you are a single parent without many options available to you. Buying a home is not easy, but it is far from impossible. There are many programs out there to help single parents in their quest for providing their children with a secure place to live.
You are not alone
Single parents need to be aware that they are not alone, and that there are many others out there is a situation similar to their own. Currently it is thought that there is something like 13.7 million single parents in the United States, so, far from being alone, there are many people out there who know exactly what you are going through. It is incredibly difficult to make ends meet at the best of times, but when you feel isolated and alone then the burden seems so much worse. Purchasing a new home is one of the most important things you will have to do as a single parent, so it is important that you are aware of all the facts before making your decision.
Government grants for single parents purchasing a new home
There are several government programs available that exist solely to assist single parents in purchasing a new home for their family. Three of the most popular programs and the following: The Housing Choice Voucher Program, the Housing and Urban Development Program (HUD), and the Home Investment Partnerships Program.
Housing and Urban Development Programs (HUD)
The HUD program offers a system of low payment loans to single parents and others in financial difficulties or tough economic situations in the purchasing of a new home. You could also receive compensation in the event that you wished to renovate your current home. This program can provide loan guarantees for single parents, especially single mothers who otherwise may not be eligible for any loans.
Housing Choice Vouchers program
This is one of the HUD programs that are the most beneficial. Housing Choice Vouchers are the primary method the government uses for assisting such groups as the elderly, low-income families, and single parents who are thinking of purchasing a new home. Through this program you will be able to choose your own home, meaning that you will not only be purchasing a new home to shelter your family, but also that you will be choosing a home that suits all of the members of your family down to a tee, as long as it is within the boundaries of the program. Eligibility for this program depends on the annual income of your family. If your yearly income exceeds 50% of the median for you area, than you will not be eligible. Medians vary from region to region and the financial aid you can receive in this way can be very helpful in the purchasing of a new home. The main advantage of this program is that it aims to assure that all families, single parent or otherwise, will be assisted in purchasing a new home and therefore allowing them to be properly sheltered.
Home Investment Partnerships
This HUD is one that provides funds to many organizations for the building of new homes. This also applies to the purchasing of a new home should you wish to find shelter for your single parent family. However being a single parent will not be enough to get you into this program as you will have to fall into a certain income group to qualify.
Generally you will be required to be a US citizen in order to qualify for these programs. Low to moderate income families in rural areas will only be eligible for loans if you can prove that you will be able to make the payments and if you can prove that you cannot obtain mortgage through a different source. If you look hard enough you may also be able to find the Housing Finance Agency in your area, as they exist specifically to provide help for single parents who are thinking of purchasing a new home. They are a very well-kept secret so you may have your work cut out for you finding them. You may also be eligible for Adjustable Rate Mortgage Insurance, which will help you in purchasing a new home for living purposes only. As the aforementioned HUD programs do not provide money directly to the consumers, they may point you in the direction FHA lenders for your monetary purposes. There is also the option of Condominium Unit Purchase programs that can help you in purchasing a new home in a condominium development.
Tips for single parents purchasing a new home
- You need to be absolutely certain that the house you are thinking of buying is well within your budget by taking into account all of the various expenses that you will have to incur, and also keep any long term financial goals in mind.
- When purchasing a new home, make sure that you consider only those that are about two and a half times your annual income, as this should guarantee your ability to make the payments.
- You should consider starting an emergency fund when purchasing a new home for the purpose of making any payments on your home that you may otherwise be unable to make. This may be difficult, but try and do it anyway.
- Splitting costs with a relative may also be a great idea. Purchasing a new home is expensive, so striking a deal with your mother or an aunt or another family member that allows them to stay in your home in exchange for housing payments and child care help could really make a big difference to you financially.
- Be careful if you are planning to take out a mortgage when purchasing a new home. You need to ensure that monthly house payments including property taxes and insurance should not be more than about 26% of your gross monthly income; and you need to ensure that all of your monthly debt payments including the house repayment should not be more than 38% of your gross monthly income.