Single mothers have a tough life, especially if left young just like my younger cousin who is pregnant with twins, yet completely on her own. That is enough of a disaster especially for the two when they are born. With some benefits from the government and light work mothers can manage on their own with much difficulty. A dream they hold dear to their heart is their own place. They could have been kicked onto the street from their husband’s place or simply rented a place together. However, the bad news is there are no mortgage loans geared specifically towards single mothers. That will mean no preferential treatment unless there are some arrangements available in the local community aimed at those unlucky people life inflicted a lot of pain on.
Meeting The Requirements
However there is always hope if the job you pays well enough, you divorced but kept some savings or sold things to have cash for some tough times ahead and your credit score is left largely intact, meaning it is at least good to the lender, ie. it is around 650 or so. On the other hand, with a poor credit score and not enough money for a down payment your chances are looking really bad. The alternative exists and it is FHA loans for people struck badly in life.
FHA Loans Explained
They are intended for people who are incapable of putting forward the typical 20% as a downpayment and instead they are offered FHA backed loans where it is set low at 3.5%. Other criteria that follow demand the borrower be employed for some time with the current employer and have a decent credit score. The history proves plenty of those who initially benefited from FHA loans incurred debts, missed payments and disregarded all the criteria, as a consequence filing for bankruptcy and having their houses put on a short sale. Unfortunately, these are the reasons why the authorities are planning to introduce some changes to the government supported plan which would put more empasis on more responsible borrowers. If you happen to be a teacher, as so many people are, you could luck out and secure one of those houses seized by a lender for as little as 100$ under the Teacher Next Door scheme. That is only symbolic and for a good reason as the houses like these are normally located in areas seen as crime-infested and risky especially for single mothers. But with a little income you have and having already endured a lot means you could have a limited choice. If you feel this program is not for you then rentals remain the only viable option in your situation. Other than that you will need to struggle unless you are capable of finding a guarantor to act on your behalf and meeting the conventional lender’s criteria with the hopes of your financial sitution looking better as time goes by. As you can see mortgage loans for single mothers are non existent.