single parent buying a home

Help For Single Moms Who Want To Buy A House

There are no national programs catering to single moms available at this time, however there are multiple programs that could help a Single Mom in North Carolina with down payment assistance and monthly tax credits.   These programs, while they were not specifically designed as help for Single Moms who want to buy a house, there are programs available to assist single moms financially and provide guidance on the home-buying process.

Low or No Down Payment Options for Single Moms Who Want to Buy a House

USDA Home Loans NC:  This program is specifically designed for those who want to live in more Rural parts of NC.  The minimum credit score for the program is between 620 and 640 (depends on several factors) , and the property must be located within the USDA Geographic Footprint (which is changing in NC on ).

The program has very, very low PMI rates, and allows for the Seller to contribute to Closing Costs.  The Government is currently buying these mortgage loans, and so they have some of the lowest mortgage rates available.  The USDA Income Guidelines vary per county and are based on the median income for your county in NC.  There are some simple Income Adjustments that single mom’s might qualify for, like Child Care Expense.

VA Loans:  For Mom’s who are Veteran’s the VA Loan might be the best program available.  Unlike the USDA Home Loans in NC, Veteran Home Loans do not require that you live in a certain area, or that you have a maximum income.  They also use Child Care expenses when qualifying you for a mortgage loan.  If you previously used your VA Eligibility – you might qualify with partial eligibility to purchase a home.

FHA Mortgage Loans:  FHA allows a Single Mom to purchase a home with the assistance of a relative. So you could buy a home, and qualify with your children’s father, with your parents – and they do not have to live in the home with you.  The program also allows for a down payment GIFT – and it has a very easy view on Student Loans (which USDA Home Loans doesn’t have).  Seller’s can contribute up to 6% in closing costs.

NCHFA:  The NC First Time Homebuyer Program for Single Moms who want to buy a home recently went through a MAJOR change.  Now, the program can contribute up to 3% in down payment.  This means that on a FHA loan, you would only need .5% of the sales price for your down payment (and again, that can be a gift).  The NCHFA program is available to anyone who does not CURRENTLY own another residence… meaning you don’t have to be a first time homebuyer in NC , and  it can be used with the USDA Home Loan program and the FHA Mortgage Loan AND VA loans.  This program does have maximum income limits which vary per county and it also has a maximum sales price.

Assistance For Single Moms with Lower Monthly Payments

MCC Tax Credits are one of the best programs available for Single Moms.  This program, offered by NCHFA allows us to help you adjust your W2 as a homeowner so that you bring more money home.  You do not lose the ability to apply your taxes and interest to your tax refund at the end of the year – so it’s not like a double Wammy… It’s just a great program, if you meet the income requirements, to get a little extra tax credit in your monthly pay check.  This credit could be as much as $200 a month, so it’s fairly significant.

Other Programs Available for Single Moms Who Want To Buy A Home

The Good Neighbor next door program in NC is specifically offered for Police Officers, Firemen, Rescue workers and Teachers.  This is actually sometimes referred to as a “teacher” loan.  The FHA Program offers the program in targeted areas and allows for  public or private school teachers (pre-K-12), firefighters, EMT’s, and Police Officers an incredible opportunity to buy a home 50% off of the list price.  HUD believes that these public professionals can contribute to the revitalization of our NC communities while becoming homeowners.

The loan can also be made in conjunction with the NCHFA program.  Homes that qualify for the Good Neighbor Next Door Program in NC are primarily located in “targeted” areas that need revitalization – so the program is not usually available for all HUD homes in your County.

FHA $100 Down Payment Program allows a Single Mom (or anybody else) to purchase a home with very little money out of pocket.   If you are purchasing a HUD foreclosed Home, and write it in the contract – HUD will allow you to get an FHA mortgage on that property with a $100 down payment.  HUD will also contribute to your closing costs.  The buyer must be an owner occupant to qualify, and they must offer full price.  You must be willing to live in the property for a year.

Income Requirements For Single Moms Who Want To Buy A Home

Single Moms who want to buy a home in NC often ask us about a gap in Employment.  Job gaps will also be treated differently depending on the Investor.  Let’s say you were a stay at home mom for the last 7 years. With the divorce, you are now back in the work force, doing pretty much what you did before – we might be okay without a full 2 years of “new” work history.  It’s going to depend on what kind of work you are doing.

For instance, if you were a “professional” prior to staying home… a nurse, a paralegal and you’ve kept your certifications, and you are working regular hours… we can probably use your income.  If you are working part time as a waitress – we’re probably not going to be able to use that income.

Again, every employment scenario has its own wrinkles and detail, especially if you are trying to qualify for Single Parent Mortgage Loans.  We love working with Single Moms who are creating a more stable environment for their family.  We love to help create the situation that makes that Dream Home come true!

Call Steve and Eleanor Thorne about help for Single Moms who want to buy a house, employment to qualify for a mortgage, and your particular situation at 919 649 5058.  Remember – you might qualify for a Single Parent Grant to purchase a home in NC!

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