If you’re a single mother and home buying has always been something you’ve wanted to do but couldn’t afford to pull off, don’t worry anymore because there are plenty of first-time home buyer grants that you can use to fund your dream of homeownership.
According to the U.S. Census Bureau, 46 percent of single-mother households had an annual income below $25,000 in 2010 compared to 14 percent of married-couple households with children.
If you’re a single mother and home buying has always been something you’ve wanted to do but couldn’t afford to pull off, Don’t worry anymore because there are plenty of first-time home buyer grants that you can use to fund your dream of homeownership.
Buying your first home can be an exciting and scary experience at the same time.
While you have an opportunity to build equity, you’re also taking on more debt than before, and if you haven’t yet established your credit, this could be difficult to do.
But there are options out there to make buying your first home much easier and less expensive, including single-mom first-time home buyer grants.
If you’re looking to buy your first home and are a single mom, these grants may help give you the financial boost you need to make it happen.
There are many grants available to first-time homebuyers, but most of these are only open to married couples or cohabitating partners – leaving single moms out in the cold.
Fortunately, there are several governments and non-profit grant programs that provide money to low-income, single mothers who are ready to make the transition into their place. There are lot of grants available for single moms like Emma johnson grants for single mothers, is also one of them to check.
The best part? These grants do not need to be paid back, and they cover almost every expense you can think of related to buying your home!
- 1 10 First-Time Home Buyer Grants For Single Moms
- 1.1 Federal Housing Administration (FHA) Loans
- 1.2 Bank Of America’s Community Homeownership Commitment
- 1.3 US Department Of Agriculture (USDA) Loans
- 1.4 The Chenoa Fund
- 1.5 Veterans Affairs (VA) Loans
- 1.6 HUD’s Good Neighbor Next Door Sales Program
- 1.7 Conventional Loans
- 1.8 National Homebuyers Fund, Inc. Down Payment Assistance
- 1.9 State And Local Grants
- 1.10 Department Of Housing And Community Development
- 2 Frequently Asked Questions
- 2.1 What are the benefits of a home buyer grant?
- 2.2 Do I qualify for a single mom first-time home buyer grant?
- 2.3 Can I use a home buyer grant to buy a new home?
- 2.4 How much money will I get?
- 2.5 What are my other options?
- 2.6 What can I do to improve my credit score for a mortgage?
- 2.7 What are the best ways for a single parent to save for a house?
10 First-Time Home Buyer Grants For Single Moms
If you are a single mother thinking about buying your first house, check out these first-time home buyer grants
Federal Housing Administration (FHA) Loans
The Federal Housing Administration (FHA) offers several benefits to home buyers, but their single-mom first-time home buyer grants are one of the best.
They offer a great opportunity to become a homeowner for those who would not be able to afford it otherwise. If you’re struggling with credit or have a lower income, this is the perfect option for you and your family.
These grants help families get into a house that they may never be able to own on their own.
What’s even better is that there are programs that can help you pay off any debts you may have accrued through medical bills and student loans so that you can take care of your financial obligations as well as your new mortgage!
FHA loans will cover up to six percent of the purchase price of a home, making it possible for low-income families and individuals to purchase homes at more affordable rates.
With these grants in place, low-income Americans will be more likely to invest in homes in which they live rather than rent indefinitely. It’s never been easier for moms who want to buy a house!
Bank Of America’s Community Homeownership Commitment
If you are a single mom, a first-time home buyer, or an active member of the military, Bank of America has a program to help you become a homeowner.
It’s called the Community Homeownership Commitment and it was designed to help make homeownership more accessible.
With this program, eligible buyers can receive grants of up to $10,000 when they purchase a new home or build a new home in certain parts of California.
The grant will be used towards closing costs or down payment assistance. To learn more about this opportunity check out their official website!
US Department Of Agriculture (USDA) Loans
The USDA loan was designed with low-to-moderate-income rural families in mind and offers a variety of programs to help them get on their feet. It is important to note that USDA loans are only available in rural areas.
There are several types of loans available, but the two most common are the general purpose loan and the single purpose loan.
A general-purpose loan can be used for any project, whereas a single-purpose loan is limited to certain projects like building or buying a home.
For more information about what types of loans are available and how you can apply, please visit your local USDA service center or call their customer service toll-free number.
The U.S. Department of Agriculture (USDA) Loan:-
- The USDA loan is designed specifically for first-time home buyers who earn less than 100% of the median family income where they live;
- not all areas offer this program but if yours does, it could be a great option because there’s no credit check involved, and low down payments (5%) are required.
- You can even use this program as long as one person on the mortgage earns less than 50% of the family income!
- Plus, there are no monthly mortgage insurance premiums with these loans—and one thing we know about being a single mom is how expensive monthly bills can get!
The Chenoa Fund
If a first-time home buyer has an FHA loan, Chenoa Fund can provide a second loan for their down payment.
With home prices in some areas increasing by over 50% from last year, it’s not surprising that many people are looking at homeownership as the next step in their family’s life.
But with stricter credit standards and more expensive homes, first-time home buyers have found it hard to get a foothold on the property ladder.
To help make owning a home a reality for these potential buyers, The Chenoa Fund offers down payment help in the form of another loan.
The lender can offer this additional financial support because when borrowers pay off their mortgage, they will repay the Chenoa Fund through its mortgage insurance policy.
Veterans Affairs (VA) Loans
If you are a single mom, the VA provides loans with no down payment and lower interest rates.
The VA loan also has more flexible eligibility requirements than conventional mortgages, which can make it easier to qualify.
For instance, you can have an income of up to 115% of the median income in your area without having to show that you have any money saved.
Plus, if you or your spouse were ever in the military or National Guard, you may be eligible for a VA home loan.
HUD’s Good Neighbor Next Door Sales Program
The federal government offers several programs to help first-time home buyers, including first-time home buyer grants.
One such program is the HUD’s Good Neighbor Next Door Sales Program, which provides grants of up to $10,000 for single mothers who are purchasing a one-to-four-unit building in their name.
The purpose of this program is to provide assistance with the purchase and rehabilitation of properties in distressed neighborhoods and provide homeownership opportunities to low and moderate-income families.
The requirements for this grant include that you have not owned a property before or that you have not owned more than one property at any time.
If you’re a single mom trying to buy your first house, conventional loans might be an option for you. With a conventional loan like HomeReady, the bank is lending you the money and holding on to it until your mortgage is paid off.
The good thing about these loans is that there are no restrictions on who can qualify so this could be a great option if you have kids. However, to qualify, you’ll need to make at least $36,000 per year.
You’ll also have to pay higher interest rates (typically around 5%) but the good news is that it’s easier to get approved because lenders are less strict with credit requirements.
National Homebuyers Fund, Inc. Down Payment Assistance
The National Homebuyers Fund, Inc. (NHFA) offers down payment assistance grants to first-time home buyers.
The NHFA is a program funded by the State of California and managed by Habitat for Humanity of Greater Los Angeles.
NHFA assists low-income individuals and families who have not previously owned a home to purchase their first home in Los Angeles County.
NHFA works with LAs Habitat for Humanity to provide the following:-
- A Down Payment Assistance Grant to cover up to 20% of the purchase price of a new or existing single-family dwelling;
- Closing Cost Assistance up to $1,000; and
- Resale Housing Counseling Services.
To apply for this NHF program, you must work with a participating lender in most of the country. There are no complicated qualifications, but In other words, you don’t need to be a first-time home buyer.
Your household income must be no more than about the limit set by your state. To apply for a loan with us, you will need a minimum credit score of 640.
State And Local Grants
As a single mom, you may be feeling discouraged by the high costs of owning your own home. But don’t give up hope just yet!
Some government grants can help put you on the path to homeownership.
For example, HUD’s Housing Counseling Assistance Program provides a grant of up to $3,000 to help with counseling services and down payment assistance.
Other grants may also be available through your state or local government as well. Just make sure to do your research!
Department Of Housing And Community Development
The Department of Housing and Community Development (DHCD) provides single moms with first-time home buyer grants that may provide up to $6,000 in assistance.
Recipients can be any individual who has not owned a home for the previous three years, who has an income within the limits set by the DHCD, and who is a first-time home buyer.
Applicants must also demonstrate good credit and qualify for an affordable mortgage rate. For more information about eligibility requirements or to fill out an application online visit https://mmp.maryland.gov/Pages/FlexLoans/default.aspx
Single moms are often overlooked when it comes to financial assistance. You may qualify for a single mom first-time home buyer grant that can help you with down payment and closing costs.
The good news is that there are grants available to make homeownership more affordable and attainable.
The grants are given by the city, state, or federal government as well as non-profit organizations.
Depending on your income level and the amount of money you will need for your down payment and closing costs, you could receive anywhere from $3,000 up to $30,000.
Frequently Asked Questions
What are the benefits of a home buyer grant?
Home buyer grants help to offset the costs associated with purchasing a home. This can be especially helpful if you don’t have much money saved up or are looking to buy a more expensive home than you originally planned. These types of grants can also help close the gap between your down payment and the total cost of your mortgage. Some funds might be given as one lump sum, while others could provide monthly payments over time.
Do I qualify for a single mom first-time home buyer grant?
A – The requirements vary from program to program, but most will require that you’re looking to buy your first house, have a low or moderate income, and meet certain conditions regarding employment status and credit history.
Can I use a home buyer grant to buy a new home?
Yes, you can use a home buyer grant to purchase either a new or existing property. You’ll want to consult with a lender before applying so they can determine how much you’ll need in terms of down payment, closing costs, and other expenses related to the transaction.
How much money will I get?
This will depend on several factors, including your location, income level, and credit score. You’ll want to ask about any specific details or restrictions when looking into your options so you can be prepared.
What are my other options?
In addition to first-time home buyer grants, you might also qualify for down payment assistance programs and government-backed loans.
What can I do to improve my credit score for a mortgage?
The best thing you can do to improve your credit score is to pay off all of your debt. This includes credit cards, student loans, and personal loans.
What are the best ways for a single parent to save for a house?
Single moms who are looking to buy their first house need to take advantage of any opportunities that will help them save money. One of the best ways to save is through grants, which do not have to be repaid.