There are innumerable challenges associated with caring for kids if you are a single parent. Nevertheless, some single moms face unique challenges, while others face universal hardships. As a single mom, you are disadvantaged financially and must shoulder a load that two adults usually share.
The responsibilities of being a single mom can sometimes prevent single moms from developing friendships or finding a companion. In addition to their jobs and raising their children simultaneously, single moms find it nearly impossible to achieve a work-life balance.
One of the biggest monthly expenses that most single mothers face is rent. Single mothers buy their own houses to ease their monthly financial burden through rent expenses. In this guide, we will detail the various government assistance programs for single moms that help in this regard.
If you live in Los Angeles and are troubled by increasing rent, you might want to check out our article about affordable housing for low-income individuals in Los Angeles.
Important Single-Mother Statistics
Single mothers comprise a significant portion of the US population. The following statistics can help you better understand the challenges faced by single moms.
- Of all the single-parent families in the US, 80% are headed by single moms.
- Nearly 47.5% of single moms in the US live in poverty.
- Approximately 12.7 million children under 18 live with single mothers.
- According to the US Census Bureau, more than half of the single moms in the US are unmarried, nearly a third are divorced, and the rest are either separated or widowed.
- Another report by the Census Bureau found that just a third of the US single moms received child support at an average of $286 a month.
- 27.7% of single-mother families are food insecure.
- As of 2019, nearly 75% of single moms were not homeowners.
Single Mom First-Time Home Buyer Grants
Raising children on your own is difficult, regardless of the circumstances. Although owning a home may seem out of reach, having a roof over your head is necessary. Nevertheless, single moms who hope to own their own homes can take advantage of many government grants and private programs.
The following are some of the single mom first-time home buyers grants that provide single moms a shot at buying their first home.
If you have trouble commuting to work or taking your kids to school, read our article on free car grants for single moms.
Single Moms to Homeowners
The Single Moms to Homeowners program aims to help single moms become homeowners by helping them leave rented housing for a steady, safe neighborhood. With this program, successful applicants are connected with local lenders who understand single moms’ financial and housing needs.
Single Moms to Homeowners assists single moms who are aspiring homeowners in the form of help with down payments and closing costs. An amount ranging from 2% to 5% of the purchase price is typically offered as financial assistance.
To help single moms move into a new home, Single Moms to Homeowners has partnered with various local businesses. Single moms can easily move into a safe, secure home by contacting contractors, painters, fencing companies, and appliance companies.
A VA loan could be the best loan program for a single mom who has served in the military or has a spouse who has served. Veterans and family members can apply for VA loans for only a one-time, upfront fee.
In addition, VA loans typically have some of the lowest mortgage rates on the market, which translates into lower monthly payments for borrowers. These loans do not need a downpayment or mortgage insurance. Borrowers must, however, have a credit score of 580 or more and a debt-to-income ratio of less than 50%.
Bank of America’s Community Homeownership Commitment
First-time homebuyers can receive grants from the Community Homeownership Commitment program offered by the Bank of America. The following types of grants are available:
- The downpayment assistance is limited to less than $10,000 or 3% of the purchase price.
- Closing cost assistance of up to $7,500.
There are also mortgages available from Bank of America Affordable Loan Solution, which offers home loans as high as $647,200 with a 3% down payment and as high as $970,800 with a 5% down payment.
A HUD-approved counseling agency may require applicants to complete a home buyer education program and meet certain area-specific income requirements. It is necessary to obtain mortgage insurance.
National Homebuyers Fund Down Payment Assistance
Single moms can become homeowners with the help of the National Homebuyers Fund NHF. The National Homebuyer Fund provides new homebuyers assistance of up to 5% of the total value of the mortgage. This assistance can be used for the down payment and closing costs or any of these.
A participating lender is required to help you apply for NHF. The eligibility requirements for this program are flexible, and it is available in most states. It is available to all homebuyers in low or moderate-income categories.
The income limits are determined by the state where you apply. People with credit scores of 640 or above and a debt-to-income ratio of 45% or less are eligible. This financial assistance can also be combined with other home buyer assistance programs to maximize your savings. This program can be used for the following loans:
There may be a possibility of forgivability or repayment depending on your state’s program. Single moms face numerous hurdles in their daily lives. Buying their own homes is one of the biggest challenges and one of their biggest achievements.
However, some financial assistance programs can help single moms with their down payment and closing costs when buying their first home. Single moms should choose from the programs mentioned above as per their availability to ease their first steps toward becoming homeowners.
Frequently Asked Questions:
While there may not be grants specifically designed for single moms, many first-time home buyer programs and grants are available to assist low- to moderate-income individuals, including single mothers. Some options include FHA loans, USDA loans, and down payment assistance programs provided by state or local governments.
Eligibility criteria typically include factors such as income, credit score, and the location of the desired property. Single moms can visit the respective program websites or consult with local housing authorities or HUD-approved housing counseling agencies to determine their eligibility.
To apply for first-time home buyer grants, single moms can contact their local housing authority, visit the respective program websites, or consult with a HUD-approved housing counselor. These resources can guide applicants through the application process, provide information on required documentation, and offer additional resources or referrals as needed.
Visit the rest of the Gov-Relations to read about other assistance programs and grants. If you want to pursue higher education but are financially constrained, read our guide on scholarships and educational grants for single mothers.