First Time Home Buyer Programs For Single Mothers

Buying a house for the first time can be difficult for most people and especially for single mothers. As a single parent, only one income is available to cover expenses. Perhaps, the biggest obstacle to first time home ownership is getting the financing for the down payment and finding an affordable mortgage loan.

Before looking for a house, begin by getting pre-approved for a home mortgage loan so that you know how much of your income can go towards the mortgage payment. In addition, reading about the home buying process can be very important as there is a lot of paperwork to be completed. Lastly, find a reputable real estate agent that understands your financial situation and can find a home that fits within your budget.

Finding the Down Payment for your First Home Purchase

Down payment assistance and subsidized mortgage loans are available from many organizations to help single moms buy a home. Below, we have listed some of the programs available as well as the links to their websites to find more information on local home buyer assistance for single moms in your area.

FHA Loans
The Federal Housing Association offers programs that will greatly aid those who need help in buying a house for the first time. Unlike other mortgage loans, FHA loans are offered even to those with low credit scores and do not require a rental history for the application. In addition, the down payment is only 3.5% of the house value. If that is not enough, someone can also co-sign the mortgage loan with you, even if they are not living on the property. Probably, the best feature of FHA loans is that mortgage payments are low and the rates are locked in for the life of the mortgage. For more information, please visit http://www.hud.gov website.

Habitat for Humanity
Habitat for Humanity is an nonprofit organization that builds simple and affordable homes and sold at no profit. All the labor is provided on a volunteer basis and materials are donated to build or rehabilitate simple homes for families in need of affordable housing. The mortgages for the homes are affordable and the mortgage payments are used to fund construction of more Habitat for Humanity homes.  For more information, please visit the http://www.habitat.org website.

Ameridream
Having trouble coming up with the down payment? Ameridream is a charitable organization that helps low income and underserved families to purchase a home through their two programs. Ameridream offers a home buyer education program as well as a down payment assistant program.  For more information, please visit http://www.ameridream.org to learn more.

Fannie Mae
For those with good credit scores and a sufficient down payment, Fannie Mae sells a large number of foreclosed homes. These distressed sales offers an opportunity to purchase a home at below market prices. As with any major purchase you need to do your due diligence since many of the laws that protect buyers in a conventional real estate transaction may not apply to a foreclosed home purchase.  For more information, visit http://www.fanniemae.com to learn more.