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Being a single parent can be difficult, and it can be even harder to purchase a home when you are solely responsible for providing financially. But fortunately, with the right resources and information, you can explore different options to help you get the home of your dreams. Check out these tips on how to find the best home loan for single parents in St. Louis:
The first step is to research all of your options when it comes to obtaining a home loan as a single mom or dad. This could include researching government programs such as FHA loans, VA loans, USDA loans, and other low-interest rate options available for those who qualify. (More on those options in a minute.) Also, if you’re having trouble saving up enough money for a down payment, there are various down payment assistance programs available to single parents in St. Louis that could give you the extra funds necessary to get into a new home. Many of these programs have specific eligibility criteria, though; so, make sure that you look into them carefully before taking advantage of them.
Now let's explore several of the different loan options that may be helpful for you as a single parent.
One agency within the US Department of Housing and Urban Development (HUD) is the Federal Housing Administration (FHA). FHA loans are more accessible than traditional mortgages because they have lower down payments and more lenient credit score requirements. For example, borrowers who qualify for FHA loans may only need 3.5% of the total purchase price as a down payment, instead of the typical 20%. Additionally, FHA loan applicants with credit scores as low as 580 may still qualify for a loan, depending on their past history with mortgage payments and other factors.
If you are an active military member, veteran, reservist, or National Guard member, then you may qualify for VA loans which provide excellent benefits such as no down payment requirement and zero private mortgage insurance premiums. VA loans also come with competitive interest rates and don’t require any minimum credit score requirement. If you meet the qualifications for these loans, they can be an incredibly helpful way to finance your dream home.
The United States Department of Agriculture (USDA) offers rural housing loans through its Rural Housing Service (RHS). These government-backed loans offer many benefits such as no required down payment, low monthly mortgage insurance premiums, and competitive interest rates – making them an excellent option for single parents who meet certain income criteria and are looking to purchase a home in rural areas of St. Louis County or St. Charles County.
Single parents have several great options available when it comes to financing their dream home in the St. Louis area, and they all have their own unique benefits. Don't forget that it can be helpful to seek professional advice from realtors or mortgage brokers who know the local market well and can provide expert guidance on what type of loan would best suit your needs and budget. They can certainly save you time and money by helping you find an option that works for you, both financially and personally.