Single Parents and Homeownership: It is Possible to Buy Your Dream Home on One Income

There is little doubt that climbing onto that first rung of the housing ladder has become more of a challenge for younger people than previous generations.

This has even prompted the current crop of potential first-time buyers to be tagged as generation-rent, but there are still reasons to consider that home ownership is not an impossible dream.

Looking around at properties available, and you can view Entwistle Green’s office here, for example, you will find that even a single parent trying to buy on a lone income multiplier, can potentially find a way to get a house that they can truly call home.

Working out what is right for you

It makes a lot of sense to weigh up your options and decide whether your circumstances are actually better suited to either renting or trying to buy a property.

There are a number of other considerations that go beyond being able to afford the mortgage payments and it would be wise to do all of the relevant sums and work out a detailed cost comparison between what your total expenditure would be based on both options.

When you buy a home, there are additional expenses that you will have to pay for that you wouldn’t face as a tenant. Extra insurance costs and paying for any maintenance costs that are required, are just two examples of where your tight budget might come under a bit of extra strain.

Take a close look at your total current income and expenditure, so that you can work out exactly how much money you have spare after paying for everything, so that you know how much margin for error and unexpected costs like repair bills, that you actually have.

Doing these sums will definitely help you get a clearer picture of your finances and work out whether buying or renting is a better option.

Being a single parent could make it easier

You should find that although many low-income homebuyer programs don’t specifically set out to target their help towards single parents, a lot of these schemes do have family income limits, which can make it easier to qualify for a loan if you are a single parent and your income falls below the threshold.

You will need to have a good credit history and find a home that you are able to afford in order to be approved, but when you consider that there are programs available from a number of different sources, including the Federal Housing Administration (FHA) and the U.S Department of Agriculture, there are options available that could turn out to be a good fit for you.

No deposit

One of the big barriers to homeownership is raising the sort of deposit that is normally needed as a down payment, but some low-income loan programs offer the possibility of getting a home loan where you put zero percent down.

Some schemes only require as little as a 1% deposit and although FHA loans require between 3% and 5% as a down payment, it is often more flexible with its qualifying criteria in comparison with conventional lenders.

Even if you have no down payment available or only a small amount to offer, this should not prove to be a barrier to buying a home, if you choose the right scheme.

Second time around

Although you would expect that many government-backed schemes are heavily geared towards first-time buyers, it should be noted that you could actually still qualify for a loan even if you have owned a home before.

If you have been in a relationship that has subsequently finished and you find yourself as a single parent, this could mean that you could qualify as a first-time buyer, provided you have not owned and occupied a property for three years.

Being able to make a fresh start in more ways than one and qualify as a first-time buyer is definitely a possibility as a result of the regulations attached to a number of loan schemes.

Making the move

It can often help to get some help when deciding to make an application for a loan to buy your home.

A financial counselor or credit advisor can help you to assess your options and provide guidance in getting your pre-qualified with a lender so that you can start to search for a suitable property to purchase.

Being a single parent might seem to make the dream of homeownership a difficult one to achieve, but there are definitely ways to make it happen.

Rachel Daniels worked in the housing industry for many years prior to having her two kids. She enjoys writing property related articles and especially likes to spark hope in those who think they cannot afford a home of their own.

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