Single mothers, like other people, can benefit greatly from purchasing a home. A home can gain value over time, and interest paid on a mortgage is deductible from U.S. federal income taxes. While a single parent does not have the benefit of two incomes to help with the mortgage payments, mortgage grants can assist single mothers with achieving their dream of purchasing a home.
Warning
Before purchasing a home or enrolling in any mortgage grant program, it is important for a homeowner or a potential homeowner to do her homework. The U.S. Department of Housing and Urban Development recommends that all potential home buyers work with a real estate broker prior to purchasing a home. HUD also recommends speaking with a HUD-funded housing counseling agency to help determine whether purchasing a home is an affordable option, and to discuss all possible housing options.
USDA Rural Development
The U.S. Department of Agriculture's Section 502 programs include grants and mortgages that can assist homeowners and potential homeowners. The Section 502 programs are primarily used to help low-income homeowners and families purchase homes in rural areas. These programs can not only be used to help purchase a home, but can also be utilized to help pay for necessary home repairs. To qualify, a homeowner must have low income, but enough income to be able to realistically afford the mortgage payments.
FHA Loans
FHA loans, which are insured by the U.S. Federal Housing Administration, are another option available to single mothers. Due to the fact that FHA-insured loans are backed by the government, they require a lower down payment than a conventional mortgage. It can be easier for people with less-than-perfect credit to qualify for an FHA mortgage than a conventional mortgage. FHA loans also feature lower closing costs.
Local Programs
Many state and local governments offer mortgage programs for single mothers. State and local programs can provide assistance with a down payment, provide help with making payments on an existing mortgage, or assist with other home-related needs. The best way to find out more about state and local programs is to contact local housing assistance agencies. The names of nearby housing and community development agencies are often listed in the blue pages of the phone directory, but can also be found by contacting the state or local government. For further assistance with finding local programs, please see the link in the Resources section of this article.
How to Enroll
The best way for a single mother to enroll in a mortgage grant program is to contact the agency that administers the program. That agency will be able to determine if a homeowner or a potential homeowner meets eligibility guidelines. A HUD-certified housing counselor can also assist with identifying appropriate programs and enrolling in them. It is a good idea to check with local and federal government agencies frequently to learn about new programs that may be helpful.
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