For a single parent, a budget is the first thing you must put in order before looking for a home. If you’re a newly single parent who is used to two incomes, you may need more time to adjust to your new life.
Once you’ve done the hard part of listing down all your monthly expenses and figuring out how to cover them with a single income, planning how to get a house will be a lot easier since you’ll know exactly how much you can allot for your mortgage loan every month.
And, when you do purchase a house, you also have to take into account the expenses of maintaining it. A free budget planning worksheet by Bankrate can help you with accounting and tracking of your expenses.
Acquaint yourself with The U.S. Department of Agriculture (USDA) and the Federal Housing Administration (FHA) programs that aid one-income households in buying their own homes.
If you happen to be a veteran or in the military, there’s a VA loan with the option of no money down plus a string of other benefits. Check with your state’s local government housing offices if they offer programs that let you just give a 3.5 percent rate on the down payment and the closing. If you’re planning to avail yourself of these programs, you have to make sure to find a lender that is certified to offer these programs. Ask your agent about it and work through it together.
If you have credit issues or you do not have a credit history of your own, there are loan programs backed by the government that are flexible on credit and even exempt you from waiting periods associated with bankruptcy or foreclosure.
The U.S. Department of Housing and Urban Development (HUD) has a reference guide which you can check if you qualify as a first-time homebuyer.
Time is another valuable resource, and you can save so much of it when you make a list of preferences for your home. How many bedrooms does your family need? Are schools and hospitals within the area? Does it have to be near your workplace?
