Housing loans for single mothers: first time home buyer loan finance potions for single moms
One of the main challenges that single mothers face is getting a safe and a secured place for accommodation for herself and her children. There is often a need of financial assistance as their income has certain limitations on how much she can spend on their homes.
Not all women raising their children fall under the category of low income group and so each person's financial need is different.
Some of the most reputed loans which are offered by the government are as follows:
Federal Housing Administration (FHA)
Single moms who are looking for home loan financing for single moms can consider applying for this loan. Once the loan is insured the participating lender can offer a better deal to the borrower than that of a conventional loan.
For the first time buyer FHA Loan means minimum interest of 3.5 per cent as opposed to 5 per cent which is the normal rate of interest for purchasing a house.
The FHA program was developed to provide mortgage insurance for a home purchase or refinancing of the existing home. The loan could be funded by any approved lender with HUD as the insurer.
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HUD 203(K)
This is another program set up to get people funding they need to purchase or refinance the home with the repair or improvement cost included in it in advance. In case of the loan mentioned, the money is advanced by the approved lender.
As a condition, HUD 203(K) is only available to people planning to occupy the home themselves. The down payment required for this type of mortgage is 3.5 per cent of the purchase price plus the repair costs for the property.
Local Resources
Single moms who are struggling financially may be able to get help buying a home from local authorities and organizations. Some charitable groups and government organizations provide grants and low interest loans to citizens who want to buy homes yet do not qualify for traditional mortgage funding.
You can learn about - HUD Offering $35000 Home Repair Grants
Federal funding offering down payment assistance to single mothers has been dissolved. Instead there are many local authorities which are still offering help to the low income single mothers. So, if you are a single mother and you fall under one of these categories, then you can be eligible for one such program.
Individual Development Accounts (IDA) is a matched savings plan and helps those who are with limited income, allocating funds towards the purchase of a new home. This plan continuously encourage single mothers in building their own assets and preserving wealth.
Down Payment Assistance Program by Location is offered mainly to first time home buyer. The agencies that are offering such assistance are:
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Virginia Department of Housing and Community Development
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Washington State Housing Finance Commission'
If you want to know more about Down Payment Assistance Program then look into the HUD Directory.
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United States of Department of Agriculture (USDA) works for single mother who are searching for home in the rural area catering to the low and mid income level women.
Habitat for Humanity believes in a "world where everyone has a decent place to live" and gives low income single mother an opportunity to have a home of her own. If the loan gets approved, then there will be a nominal down payment and easy installments to pay back the loans
Fannie Mae offers residential properties for sale through Home Path Properties Program. The houses are available in extremely subsidized rates as they are foreclosures and are eligible for Home Path Financing. This offers easy mortgage terms and conditions and has an option low down payment.
For full information, visit-Â https://www.homegrantsinfo.com/
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