First time single parent home owner mortgage can often be quite difficult to be accepted for. When you are a single parent you have to cover many payments alone which include health-care, transportation, food and home owner mortgage payments. The government now have a mandated child support payment scheme which take care of many of these bills for single parents but they have have to earn enough money to pay for these items monthly. The payments generally range from $4000-$6000 per year.
The single parent needs to support the family through her income. This is exacerbated when the partner does not contribute to the expenses. One needs to take on additional jobs to be able to address the growing expenses of the family. This leads to feelings of not having influence over one’s life and a feeling of ineptitude. Being financially free is the biggest challenge of single parents to date. Being debt-free is a large factor in happiness amongst single parents. One of the most notable debts of single parents is the home owner mortgage.
This is the first time single parent home owner mortgage has significantly increased over the last twenty years. A current study conducted in Britain stated the debt variation among home-owning single parents and single parents who rented apartments. Findings showed that the debt of single parent home owners are at 13% whilst single parents who rented apartments was at 25%. Either way, the study shows that single parents are struggling with mortgage payments. Various alternatives such as moving to a complex to decrease payments or living with other fellow single parents have been done. This minimally assists in the mortgage payments.
One way of securing financial independence, in terms of mortgage payments for single parents, is having a strong income power. The single parent needs to analyze thier finances to be able to find out what works in terms of the mortgage payments. Commonly, the single parent realizes that he/she needs to take on an extra job in order to sustain the mortgage payments.
In choosing the correct mortgage for single parents, one needs to consider the following: current financial standing, dynamics of ever changing finances, how long one intends to keep the house, and the alteration of mortgage payments. One needs to take into consideration fixed mortgage rather than yearly mortgage and refinancing for example. The bank also reviews one’s credit limit when the single parent applies for this. For easier Loan approvals, iHomeMortgage.com recommends the following:
- Bank statements for the previous two months on all accounts
- Statements for two months on all stocks, mutual funds, bonds, etc.
- Copy of latest 401K statement
- Explanations for any large deposits and source of those funds
- Copy of HUD2 Settlement Statement on recent sales of homes
- Copy of Estimated HUD1 Settlement Statement if a previous home is for sale, but not yet closed
- Gift letter (if some of the funds came as a gift from a family member
- W2 forms for the last two years
- Most recent pay stubs covering a 30 day period
Federal tax returns (1040s) for the last two years, if:
- You are self-employed
- earn regular income from capital gains
- earn sizable interest income, etc.
- earn more than 25% of your income from commissions or bonuses
- own rental property
- you are in a career where you are unlikely to take non-reimbursed business expenses
- Year to date Profit and Loss Statement (for self-employed)
- Corporate or Partnership tax returns (if you own more than 25% of the business)
- Pension Award letter (for retired individuals)
- Social Security Award (for those on Social Security)
- Copy of purchase agreement
- Documented receipts of child support
- Copy of Social Security Card
- Copy of Driver’s License
- Copy of DD214
- Copy of most recent monthly home owner mortgage bill
- Landlord’s name, address, and phone number
- late payments
- credit inquiries in the last 90 days
- copy of bankruptcy papers