Mortgages for single mothers |
Ironically, there has been a significant surge in the population of single mothers across the globe. It comes as no surprise to learn that numerous households are run singlehandedly by divorced mothers. The unfortunate part of the tale is that a large percentage of single moms live without a decent shelter. Most single mothers find it extremely difficult to meet the stringent requirements attached with a conventional mortgage. Fortunately, there are many programs out there that make mortgages for single mothers possible even during tough times. Let’s have a look at few of these renowned programs offered mainly by government help for single moms for the betterment. Talking about single mother mortgages, it would be incomplete without a fair discussion on FHA Insured Mortgages. FHA Insured Mortgages have helped loads of single moms out there realize their dream of home ownership. Under this program, an applicant is required to make a down payment of only 3.5% towards the total cost of the house, which is something most single mothers manage to afford. The requirement for this loan isn’t all that taxing either. Despite the low down payment amount borne by the applicant, the applicant doesn’t have to buy private mortgage insurance. FHA will insure the loan and charge an upfront premium of 1.75% for purchase money mortgages and full credit qualifying refinances. The balance premium is paid along with the monthly mortgage payments till the time the loan-to-value of the mortgage reaches 78% of the appraised value of the property or the original sales price, which is lower. Housing and Urban Development (HUD) offers loan guarantee to single mothers who find it difficult to procure a conventional mortgage. Although it’s just a loan guarantee and not an actual loan, it certainly improves one’s chances of obtaining a loan. More than often, single moms end up with desirable mortgages after receiving a loan guarantee from the Housing and Urban Development. Today, The Home Investment Partnerships program also provide assistance with the down payment amount to individuals who are unable to realize their dream of homeownership due to financial issues. Usually, such financial assistance is offered only to low income earning families. Since most single moms fall in the category of low income earners, they have a good chance of receiving financial assistance for single moms from the Home Investment Partnerships program to own a decent shelter for themselves and their dependents.
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