Single moms in these troubled economic times often become overwhelmed. How to meet the demands that are placed on them to provide simply the basic needs for themselves and their children can seem more and more futile. Add bad credit to the equation and things can get really difficult. But they needn’t despair. There is help and various programs out there to assist in securing home loans for single moms with bad credit. Although the economy has taken a nosedive in past months and has caused much grief for many people, there are some things that have come about that could actually help single mothers who have hopes of buying a home. One thing is the fall in housing prices. With prices so low, now a single mother, even one who has less than perfect credit, can be eligible for a loan to buy a home.
The government is a source for many of the programs that offer loans for single mothers. The FHA loan program is one example of the options available through the government. These loans are guaranteed by the government, but are made by regular lenders such as banks and mortgage companies. Since these loans are not based entirely on credit, the lenders will treat them individually and consider other information besides the applicant’s credit rating. This makes the loans more likely to be approved for applicants like single mothers. The applicant has a chance to impress the lender in more ways than just by their credit history. There are also many other types of home loans for single moms with bad credit that you can learn about from the government as well, including grants.
The benefits for single moms and others who are able to secure loans through programs such as the FHA program would include lower interest rates and, therefore, lower monthly payments. Also, other programs might offer further inducement for single moms and other applicants such as the first-time home buyer programs or added tax benefits. At the same time singles moms are receiving these benefits, they might also find a few disadvantages that come with securing this type of loan. Due to added paperwork, these loans might take longer to process. They might also have much tougher requirements that the home itself must meet in order to qualify for the loan.
To get started, single moms, regardless of what kind of credit they have, should look into the options available to them. Libraries, as well as the internet, should have unlimited information on accessible programs and plans. If they don’t already have a lender in mind whom they prefer to deal with, they can research a few different ones to compare their rates and reputations. Next is to choose their lender and fill out an application. The application process is usually free, so there is nothing to lose. The single mom applicants might not meet with success the very first time, especially if they have bad credit, but if they are persistent and keep trying, they can and will succeed in getting a home loan they can afford. For them, one more of life’s problems has been met head on and dealt with.