As a single mother, one of the most important things that you need to do is to provide a home for your children. This is, however, not always possible. What a lot of single parents don’t know is that there are actually several rent to own homes for single mothers out there. This option makes getting a secure and safe home for you and your children possible.
What Are Rent to Own Homes for Single Mothers? How Does the System Work?
Basically rent to own homes for single mothers are paid for in a similar way to a mortgage loan. The main difference is that the owner of the home holds the note for the property rather than the bank. The home owner will hold the note until you are able to qualify for a traditional mortgage loan without placing yourself in financial difficulty. In order to do this you will have to:
- Give the homeowner a down payment (which is a lot lower than what you would have to pay if you were getting the loan from a bank)
- Provide proof that you will be able to afford the house
One of the nice things about these kinds of arrangements is that your credit history does not have to be perfect. At the most the homeowner will probably do a quick tenant background search on you to make sure you are a suitable person to rent their home. Making the down payment and paying the rent on time will make it easier for you to get a mortgage loan when the time comes. You will have a Lease Purchase Agreement with the homeowner which will last from about 18 to 24 months during which time you can live in the home as if it were your own and make any repairs and renovations necessary that will make getting the mortgage easier. If you are unable to qualify to mortgage after the specified time period has elapsed then you the owner can either extend the lease or ask you to leave.
Situations in Which Rent to Own Homes May Be the Best Option for Single Mothers
There are a few situations in which single parents may find themselves where rent to own homes for single mothers may seem like the best option. Affording a good home is not easy and not all single mothers are able to achieve this goal. A rent to own home may be the best way to deal with the situation.
The following are some cases in which renting to own a home may be the only way out:
- You are relying on the mortgage option. Don’t – the mortgage meltdown has made it very difficult for single parents to qualify for a mortgage home in order to fund their houses.
- You are relying on the prospect of getting a bank loan. Don’t – it is very difficult to get credit in the current economic climate.
- You are relying on help from the FHA First Time Homebuyer Program. Don’t – if you are one of those single parents who bought a home during the subprime mortgage meltdown you have probably figured out by now that you can’t afford it. This means that you have bad credit and will be unable to get a home through the FHA First Time Homebuyer Program.
As a result of all of the above rent to own homes for single mothers are by far the best option for you to consider.
Reasons Why Someone Would Want to Lease-to-Sell Their Home to You
You may be wondering why anyone would ever want to lease their home to you with the intention of eventually selling it to you. There are a few reasons why this may be the case:
- The home is an investment for the owner but he or she is having trouble selling. This may drive them to look into other options.
- The owner may have had to leave for a variety of reasons and needs to dispense of his house in some way. For example he may have had to relocate for work.
- The owner does not want the property and would like to get rid of it as quickly as he or she possibly can.
- The owner has had the home on the market for quite a long time and no one has shown any interest. In this case he may decide to lease-to-sell his home.
There are quite a few homeowners out there who are in positions like these and it is well worth looking for one near you. Rent to own homes for single mothers do exist.
Finding Rent to Own Homes for Single Mothers
The question now arises as to how exactly you should go about finding one of these amazing rent to own homes for single mothers.
The first place to look is in the real estate section of the Sunday newspaper. You may be surprised to learn this but the chances are high that there will be something like 5 to 15 of these homes advertised every week. This is more than you may have thought, but it just goes to show that rent to own homes for single mothers are available out there if you can find them. They are actually fairly easy homes to spot as owners advertise them fairly well.
There will be some homes that are not advertised as rent to own homes for single mothers, but single parents should still call up the owner or realtor of any homes they are interested in and find out whether or not concessions can be made considering the situation. A lot of sellers are desperate and may be happy to grab the opportunity to offload their home to you.
The real estate market is in big trouble at the moment. While this is not good for the country as a whole, it can certainly benefit single parents looking for rent to own homes for single mothers.
A Few Other Options
There are also a few other options you could consider when looking into owning your own home. Below is some information that you may find useful if you want to look into other ideas:
U.S. Department of Housing and Urban Development
451 7th Street S.W., Washington, DC 20410
Habitat for Humanity International
270 Peachtree Street NW
Atlanta, GA 30303 USA
Centralized Servicing Center
P.O. Box 66889
St. Louis, MO 63166
Renting vs. Owning
You may be wondering why we are advocating rent to own homes for single mothers. You may think that is would just be easier to rent without any added hassle. While there are advantages to renting there are also many advantages to owning a home as well that are well worth your consideration.
There are a few advantages to keep in mind when it comes to renting. For one thing someone else is responsible for all of the time and money that goes into maintaining a home. You will never have to deal with large repairs that could break your bank account. This saves you time and money allowing you to pay more attention to doing what you live. If your live in a rent controlled city your rent will stay low in comparison to your pay check. It also makes more sense to rent if you plan to stay in the home for less than five years.
Your landlord controls your life. If there is no rent control you may have to deal with arbitrary and huge rent increases and your landlord may evict you at any time. You also don’t accrue equity on the home, which for some home owners is the biggest asset they will have going into retirement.
The biggest advantages of owning a home are equity accrual, tax breaks, fixed costs, and return-on-investment potential. As mentioned previously your home can be your biggest asset and your ticket to an enjoyable and successful retirement.
However homes come with a lot of responsibility. Not only will you be responsible for any repairs that need doing, you will also have to pay many things such as mortgage and insurance. If you are suddenly unable to work for a long period of time you will struggle to make these payments. The fluctuations in the market will affect your success as a home owner, but just remember that if you plan to stay in the home for ten years or more this will affect you less and less.
Now that you have looked at all of the facts surrounding the rent to own homes for single mothers issue you should be well aware that there are few options out there for you which are better. This is one of the best things that single parents looking for a safe home for their children can do. The least you can do is to look into the various options that are available in your area and see whether or not you will be able to benefit from this fantastic housing option as soon as possible.