Single Parents Mortgage Loan Options

Home Mortgages for Single Moms and Dads: Housing Options For Single Parents

Being a single parent is extremely difficult and it carries with it a lot of responsibilities. These consist of placing food on the table, child transportation, kids healthcare, insurance payments, and home loan payments.

The federal government has mandated that child-support payments take care of the majority of these items, however single parents still have to make the month-to-month necessary payments to pay for these items, services and products. These payments can typically vary from approximately $6,000 to about $9,000 annually as a minimum.

From having combined incomes to now only one income, single moms and dads are required to support the family in this manner. This is exacerbated when the partner either has passed or does not contribute to these costs. One person is now in need to be able to handle the additional burden and resolve the total expenditures of the household.

Being economically independent is one of the most significantly difficult task of single parents today. One of the largest and most frequent of these debts and or payments of all single moms and dads is the home loan.

The home loan payments of the single mom and dad has increased considerably over the past twenty years or so. A recent research study conducted in the United States stated the debt distinction in between a home-owning single parents and single parents who leased houses.

Findings showed that the debt of single moms and dads who are property owners is at 13% while single moms and dads who rented homes was at 25%. In any case, the research study reveals that single moms and dads are dealing with home loan or rent payments. A number of alternatives have popped up, such as relocating to a complex to lower payments or living with other single moms and dads have actually helped, however, it actually does very little, or nothing to aid with the actual mortgage payment.

One method of securing financial independence, in regards to mortgage payments for single moms and dads, is having a good job and strong earnings power. The single parent is required to always examine his/hers financial resources to be able to find out what works in regards to the home mortgage payments. Sometimes, the single parent realizes that he/she must take on an and handle an extra jobs in order to support the home loan payments.

In choosing the ideal mortgage for single parents, one must research and think of the following; the present financial situation, the dynamics of the ever changing financial resources, the length of time one plans to keep the home, and the modification to the mortgage payment amount needed.

Single parents must seriously consider fixed mortgages instead of the variable home mortgage. Banks always evaluate credit scores and history when single parents apply for these loans.

For easier Home Loan approvals, good advise is to do the following:

Earnings items
– W2 types for the last two years.
– most recent pay stubs covering a 30 day period.
– Federal tax returns (1040s) for the last 2 years, if you are self-employed
– own rental residential or commercial property.

– Year to date Profit and Loss Statement (for self-employed).
– Corporate or Partnership tax returns (if you own more than 25% of business).

Assets
– Bank statements for the previous two months on all accounts.
– Statements for two months on all stocks, bonds, and so on.
– Copy of latest 401K declaration.
– Explanations for any large deposits and source of those funds.
– Gift letter (if some of the funds came as a present from a member of the family.

Credit Items
– Landlord’s address, phone, and name number

Explanations for any of the following items which might appear on your credit report:
– late payments.
– credit inquiries in the last 90 days.
– charge-offs.
– collections.
– judgments.
– liens.
– copy of bankruptcy papers.

Other
– Copy of purchase agreement.
– Documented invoices of kid support.

FHA Loans
– Copy of Social Security Card.
– Copy of Driver’s License.

VA Loans
– Copy of DD214.