There are several considerations when a single parent comes to us to discuss purchasing a home and their financing options… and with all of the “rack and ruin” in the Economy, it’s not surprising that we are talking to many people who want to purchase a house, and have a divorce in their background. What are the requirements for Single Parent Qualifying For A House In NC? Great question!
FHA is a great mortgage program for many single parents because of it’s flexibility. There are some qualifying details that are specific to Single Parents that you should consider, and please make SPECIAL NOTE of the Documentation we need:
- Child Support and Alimony must be documented for the past 12 months. We will need to see cancelled checks, documented deposits in your account, or court records from the State showing that you’ve received at least 12 months of support in order to count it as a “stable” income source. This income can be important when you are applying for a Home Loan for Single Moms… so we always suggest that you deposit the WHOLE check, and then do a cash withdrawal. We’ve seen Single Moms who put in $300 one week, $250 the next week and $260 the next. We need to see “consistent” deposits!
- It must be continuing for at least 36 more months after closing. So if support will continue until your child is 18, and the child is 16 – we can not count that income.
- You can get a gift for the down payment (With FHA that’s 3.5%, if you qualify for NC Housing you can get at least 3% from the NC Housing Finance Agency for your down payment)
- You need to have a credit score of 640
- You can put a parent, or other family member on the loan to help you qualify (called a non occupying co-signor)
- We can not count rent you might receive from a roommate
If you were obligated on a mortgage with your ex-spouse, and you were NOT removed from the mortgage, we will count that payment against you. Often times, an attorney will advise you to quick claim deed the property to your ex-spouse.
This only takes you off of the DEED, if you were on the NOTE – you are still obligated for the mortgage. Your spouse would have to refinance and take you OFF of the note, or sell the property, to truly take that obligation off of you.
Court Recorded Seperation Agreements, stating that the other person is responsible for the debt, does NOT take the liability off of you.
If there’s a CAR payment, or another type of debt that you are still on the note for… and you can provide 12 months of cancelled checks showing where the other person is making the payments… we can SOMETIMES get that payment waived (in other words we might not have to count it as a debt when we are qualifying you).
For more information about Qualifying for a mortgage in NC, or for more information on Single Parent Qualifying For A House In NC, Call Steve and Eleanor Thorne, 919 649 5058 – we have the best rates, and we will take the time to help you come up with a game plan so that you can buy your next house!