Goverment Grants For First Time Single Woman Home Buyers



These first-time home buyer grant programs for single mothers are not widely advertised because it is regarded as a specific market niche and advertising dollars are not readily available. There are two basic eligibility requirements: first the earned wages of the mother have to be within the limits of the specific grant program, and secondly the mother cannot have held ownership in a home within the past three years. The grant money is not considered income and therefore free of taxes, and the money is not considered a financial liability that has to be included in any future financial matters. The first-time home buyer grants are geared toward supplementing the efforts of the successful applicant well along in the process, as opposed to being awarded at the beginning. The single mother usually has to have a mortgage commitment from a customary source, such as a bank, mortgage company or a credit union.

Also, the grant program rules usually have a maximum percentage cap of the total mortgage-most do not exceed 10% of the total debt. A key concept to remember in the qualification process is DPA, which stands for down payment assistance. The idea here is a one-time help step for the single mother to afford getting started, as opposed to an ongoing grant commitment. The best source of grant funds for first-time home buyer single mothers is the U.S. Government, administered through the Department of Housing and Urban Development. Most individual states have similar programs, with a variation of title about housing assistance, and the source of these funds is channeled through HUD (Housing and Urban Development).

The Internet is the most complete source for program descriptions and application assistance, and caution is advised relative to sources that charge fees and sell kits containing information that the public can obtain at no cost. The process can be long and slow and wearisome due to a variety of factors, so a person should plan accordingly. The best possible results are likely if you work with a single realtor dedicated to help you in the long process, and likewise a single mortgage or lender originator. The third adviser, if warranted, is a credit counselor to assist with credit repair and financial planning.

Each of these should be knowledgeable and committed to you for the long term, and likewise you should be committed to them.

Bankrate can help you find the. Experts say female homebuyers share characteristics and concerns that set them apart from male buyers. Following are four tips single, female buyers should keep in mind when purchasing a home. Buy with confidence A variety of factors — such as a greater likelihood of working at jobs that offer paltry retirement and other benefits — keep single women from achieving their financial goals, says Mariko Chang, a consultant who recently completed a report on the wealth gap for women for the Insight Center for Community Economic Development in Oakland, Calif. Although the nation has witnessed a housing bust, homes should still climb in value over the long haul, leaving longtime owners with a valuable asset, Chang says. Chicago-based Leisa Aiken says it is a mistake to expect a quick run-up in property values, especially since there’s still an abundant supply.

The Housing and Urban Development has federal funds and grants available to first time home buyers. All of these grants must be covered by the Federal Housing Administration (FHA)-- down payment assistance, tax credits for the military personnel, housing grants for persons with disabilities, senior citizens, and all other housing programs of the HUD. The government is urging first-time home-buyers to start planning early or risk being passed over for a loan. Government grants for first-time home-buyers are increasing in popularity because of the ease at which these grants are distributed. Any program the federal government has to assist first-time buyers in a home purchase will require that you attend a HUD approved Housing Counseling class. They help people get their finances organized so they will qualify for a mortgage.

Still, Aiken agrees with Chang that owning a home can help women enter a more secure retirement if they pay down their loan balance over time. “You shouldn’t think of a home as an investment that will make you rich,” Aiken says. “But if you buy a home that you can afford to pay off, maintain and live in over a long period of time, you’ll have a low-cost place to live in.” Don’t stretch your budget too far may approve borrowers with good credit and other favorable factors for a home mortgage that — combined with their other regularly occurring debts — takes up one-third or more of the borrower’s gross pay. However, experts caution it could be a mistake to borrow as big a home loan as a lender will approve. A woman who earns $50,500, makes a 10 percent down payment on a $149,000 house and carries a for the rest at 5.375 percent would have a monthly home loan payment around $750.

On the surface, that’s well below one-third of gross income, says Jeri Lynn Fox, president of the Illinois Association of Mortgage Professionals in Lombard, Ill. But that payment amount covers only the principal and interest. The buyer would also have other home-related expenses, including property, homeowners and private mortgage insurance. Add in other debts — such as a and payments — and the homeowner could find herself pushing against the upper limit on a prudent monthly debt load. Annette Simon, a Bethesda, Md.-based Certified Financial Planner, says it’s a mistake for single women to overextend when making a purchase.

“Diversification is the cardinal rule,” she says. “You should not have a mortgage that’s so big you still don’t put at least 10 percent of your income in a retirement plan.” Shop aggressively for financing A Consumer Federation of America study in 2006 found that women received an outsized share of subprime mortgages, says Barry Zigas, director of housing policy for the Washington, D.C.-based CFA. Zigas worries that mortgage lenders may not provide women with all loan information and options because of stereotypes about women’s alleged lack of financial sophistication. “Have the loan officer lay out all the options,” he says. Check rates with several mortgage lenders, and don’t simply select a lender based on a recommendation from a friend, adds Zhenguo Lin, assistant professor of real estate at Mississippi State University. Lin co-authored a recent study that found women head of households pay 40 basis points — nearly 0.5 percent — more on home mortgages than other borrowers. When controlled for income, and other factors, that difference dropped to 8 basis points.

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Government Grants For First Time Single Woman Home Buyers 2017

But that’s still significant, says Lin, who believes the cost variance is due to the fact that 41 percent of women say they relied on a recommendation, while only 25 percent of men did. Try to get seller concessions One of the most misunderstood aspects of ownership is how much money is needed to maintain the home. “You can expect anywhere from about 1 (percent) to 3 percent of the home’s value” paid out each year to cover fixes and projects, says Durham, N.C.-based Certified Financial Planner Jennifer Lazarus.

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Today, many buyers are able to get concessions from sellers upfront to fix any imminent problem an inspection turns up. That helps cut maintenance, at least in the near term, says Benjamin Clark, president of the National Association of Exclusive Buyers Agents in Avondale, Ariz. Moreover, buyers frequently ask for one-year warranties that cover repairs on appliances and major systems, and sellers are providing and paying for these policies, Clark says.