Buy Comfortable Home For Single Parents

hm3Be a single parent is not easy. For single parents, the child is the main happiness. House is one of the things that should be considered by a single parent. Comfortable home conditions will make children feel at home. Therefore, here are some tips on buying a home that is comfortable for single parents. Now see the things, a single parent should consider, in order to buy a house.

Affording a Home

When there are talks about a single parent buying a home, the first point which is considered is the cost of the house. No doubt, it is hard, when there is only a limited income flow. However, a silver lining in the dark clouds are the home buying programs. There are both federal owned and community based organizations, that help single parents in realizing their dreams. The basic rule to remember, when one is looking for a home is that the cost of the house should not be more than 2.5 times the annual income.

To find out the right plan, the first step is to find out about the homeownership programs available in your home state. There are various local State Housing Finance Agency, where you can get the necessary information from. These agencies are backed by the government. Gathering information from Housing and Urban Development (HUD) will also prove to be of help. There is an added advantage of seeking help from HUD. Other than mortgage related information, you will also be able to gather information about home-buying process and about the different home-buying programs in your area.

Credit Counseling

Going in for credit counseling is recommended, when one wants to buy a home. The state housing agencies often offer such counseling. Talking to the counselor about rent-to-own also proves to be useful. There are three aspects, which are often considered, when one wants to buy a home:
The amount that has to be paid every month should not be more than 26% of the gross monthly income. This amount is inclusive of property tax and insurance amounts.
Whatever be the credit that one has taken, including the home loans, the monthly repayment amount has to be lesser than 38% of the gross monthly income.
While availing home loans, there should be two to three months worth payment in the emergency fund.
Having a good credit score is necessary and a clean credit, so that single parents become eligible for low rate Federal Housing Administration (FHA) loans.
Single parents are considered for loans by FHA even if they have part-time employment 18 months at a stretch. However, with other money lenders it is important to have been in employment for 24 months and at two different jobs.

Down Payment

An important part of owning a home is the down payment, that has to be paid for the same. You will either have to make the necessary savings for the down payment or a relative has to gift you the said amount or opt for down payment grants . Such programs are especially for the first time home buyers, low-income families, single parent homes and individuals. There are different home investment partnerships, which can also be considered, if it is rather difficult for you to pay the down payment money. To be eligible for such a partnership, the buyer should fall under a certain income level. However, it is important to note that if the down payment has been funded by grants, then the seller cannot contribute towards the down payment cost or the closing costs.

Closing Costs

When one is buying a home, among the other things, there are the closing costs. In some cases, this cost may be waived off, if the seller of the property agrees to pay the cost himself. However, it is important to note that there is only a specific amount, which the seller can pay. The remaining will have to be paid by the buyer. It is important to note that the closing costs will have to be paid even though you have 100% finances. This includes fees, notary fees, loan fees, etc.

Loan Guarantees

Often single parents’ mortgage loan may not be approved. This is when Housing and Urban Development pitches in and stands as guarantor for the loan amount. If a single parent is not eligible for the mortgage, then he/she can apply for Federal Housing Administration (FHA) mortgage insurance. At this point, it is important to remember, that loan guarantee naturally does not mean that the loan will be approved always, however, the chances of getting the loan amount sanctioned are higher in such a case.

Repayment Options

When one is opting for a home loan, along with the loan formalities and down payment options, the repayment options will also have to be decided. If in a mother’s qualifying income child support is also included, then the court documents will have to be shown to prove that the father of the child is obligated to pay the said child support amount. It is important to note that a letter from the father or a notary us not a valid proof. In some cases, the bank statements, which prove the payment of the child support amount will also have to be produced. If you are currently on rent assistance, after availing the loan, rent assistance will be lost. In other words, the income will drop, which means you will have to reevaluate your repayment options.

First Time Home Buyers Loans

There are various facilities for the first time home buyer. One can utilize the various options, which exist that can be made use of. To be eligible for these loans, you will have to be actually buying a home indeed for the first time, either on your own or with your partner or anyone else.

Documents Required

So that you do not face dejection, make sure you have all the necessary documents ready. Verification of rent for 12 months, 12 months canceled checks, bank statements, especially for child support payments, to prove full-time income W-2 (Wage and Tax) statement, latest copy of pay slip (in case there is anything unusual in the pay slip like ‘extras’, you will need a letter from the HR representative of your company explaining the same, especially 401K loan repayment or wage garnishments), last but not the least documents proving single parent status will also have to be produced.

While buying a home, a single parent should always have the fundamentals of single parenting in mind to have a conducive environment for the child to grow in. To repay off the loans and to protect the child from economic disparities the parent should not overwork, as it can lead to neglecting the child for long hours everyday. To run efficient and blissful single parent homes, the secret lies is not gathering much information about it, as it leads to prejudices and pre-conceived notions. Keep the optimism within you, alive and the parent and the child can have a blissful life.