Single Mother - My Choice


How to Find Home Loans for Single Mothers

Finding housing loans for single mothers is tough. It's hard to qualify on your own, and if you are a single mother on your own with kids it can be even harder. If you want to get a home loan, and you feel trapped by you situation, you should read on to find solutions for your individual situation. There are many options for home loans for single mothers; you just have to know where to look.

Once you secure your home loan funding, you will be well on your way to turning the key in the door of your very own place.

Government Loans to Buy a House

Government Loans for Single MothersYou have some government options if you want to buy a house and you're unsure if you will qualify for a traditional bank loan. Your state Housing Authority may offer certain home loans for single mothers. You can find the phone number online or in a phone book, and you can call and make an appointment to speak to someone about qualification requirements. Most likely, you will qualify to receive a home loan to do one of the following things:

  • Buy a new or used home
  • Build a new home
  • Rehabilitate a run-down property

Michigan State Housing Development AuthorityFor example, in Michigan, there is a 30-year fixed-rate conventional loan available for low-to-moderate income borrowers, including single mothers, who meet the Michigan State Housing Development Authority (MSHDA) income limitations and sales price eligibility guidelines. If you are planning to have a family member co-sign for the loan, or have an adult family member live with you, all adult members of the household are required to apply jointly for the loan. Because the interest rate is low for this program, co-borrowers and co-signers are not permitted to live outside the home. Check with your state to find out if similar programs exist there. Options to help with Rent for Single Moms are also there, which are always good to know about.

FHA Home Loans for Single Mothers

FHA Home Loans for Single MothersAccording to the U.S. Federal Housing Administration (FHA), the economy is in a real slump, and statistics show that a higher number of families have a single parent as the head of household than ever before. If you identify with this situation, and you have a desire to purchase a home, then you must be aware of a few specific details in order to qualify for a FHA home loan:

  • The FHA requires that you have a 3.5% investment in the home that you choose, which is lower than the 5% investment most traditional lenders require you to have
  • The down payment you make for a FHA loan can be a gift from someone, such as a family member
  • In general, you must have 12 months of clean credit and a credit score of at least 620 to qualify for the low rates that a FHA loan offers single parents

The FHA will consider you for a loan with a part-time job even if you have only had the job for 18 months – most other lenders will require you to have a 24-month history of working at least two jobs. You can also look at government help for single moms to know about other plans & schemes that may benefit you. There are even funds for single mothers which the government has specially created.