Being a single parent is tough as you have the responsibilities of two parents, plus you need to make ends meet. Securing a home should be your priority because this will make things so much easier for you in the long run. The good news is, you can get a mortgage even if you’re a solo parent. How does it work?
There are hardly any special requirements to qualify for a mortgage as a single parent. Just like any home loan, you need to have a good credit history. Your credit score is one of the biggest factors that banks and lenders will consider. With that, make sure to check your credit score as early as now so you can make the necessary changes to improve it.
Another requirement is a low Debt-To-Income (DTI) ratio. Your DTI measures how much of your income goes to paying debt.
If you want to increase your chances of getting approved, you also need to think of the down payment. The higher the down payment you can pay upfront, the better. Doing so will let you borrow less and have a lower interest rate.
When you’re ready to apply for a loan, you need to verify your income by providing payslips from the past 30 days. You also need to provide your tax returns and W-2 forms from the past two to three years. On the other hand, if you’re self-employed, the lender will require additional documentation from you.
Next, you need to provide a list of your assets and debts, such as bank statements, retirement accounts, and so on. You will also need to provide your credit information and other financial records, depending on your situation.
Mortgage Loan Options for Single Parents
There are various home loan options you can explore as a single parent, such as:
- FHA loan: This type of loan is provided by traditional banks and lenders but is backed by the Federal Housing Administration (FHA). What makes it an excellent choice for single parents is that they have loose requirements, which will make it so much easier for you to apply.
- VA loan: This is a type of loan backed by the U.S. Veterans Affairs (VA) that are meant for service members, veterans, and surviving spouses. The best thing about this type of loan is that it doesn’t need a down payment.
Seek Professional Help
As a single parent, navigating the mortgage process can be tricky. Therefore, it’s important to consider seeking professional help. By doing so, you get to prepare and know exactly what to do to make the process a lot easier.
Indeed, being a single parent is a lot of work, and it is hard. However, owning a home is one of the best things you can do for yourself, your children, and your finances. That’s why if you’re capable of taking out a mortgage, do it now. There are many opportunities you can get today to let you finally have a home. Finally, take the time to explore all the available options in your area.
Are you looking for home loans in Sacramento, CA? We can help you here at Hawkins Home Loans! We are an online resource to help you through the process. Schedule an appointment with us today!