Even if you are a single income mother with a bad credit rating, there are several lenders who can offer you a loan for a house. Consider working with your credit rating agency to review your credit rating and work with community lenders or small banks that are less rigid about bad credit. You may want to review the programs on offer by the Department of Housing and Urban Development (HUD)
Being a single parent with bad credit is not an easy situation to work out of. Check if the home you want to purchase is valued correctly. Many areas and homes may not have been appraised for years and even if an appraisal costs money, it may save you thousands of dollars in mortgage or loan payments. When you are sure about the house you want to buy, don’t approach the most advertised large lenders. Established banks and large lenders are very strict about bad credit and charge a high Annual Percentage Rate (APR) to compensate. Therefore, it may not be worth your while to apply for a loan with them unless there are specific programs to help single income mothers or special products for women. A smaller bank or lender such as a community or non-governmental bank is a much better option. Aside from getting an APR which is reasonable, applications are typically reviewed on a case-to-case basis. The Office of Housing Choice Vouchers offer programs in tandem with the Federal Housing Administration to enable small income borrowers to qualify for a home loan.
Before looking at these programs, it’s always best to try and clean up your credit report. This can be done by reviewing it with your credit agency to see if any delinquencies can be removed in addition to keeping a clean credit history for at least one or two years.
I am a low income single mother that has been paying $600 rent for over 8 years, but the finance company does not look at the fact that: I always pay my living expenses first.. That is why I miss an occasional monthly payment, which has caused my credit to go bad.
Therefore, I will continue to be a renter at a high rental rate. If I could buy a house my monthly payment would be much cheaper.
I am a single mom with really bad credit, but I have 3 children and I need help to see what are my options for a home for my family. Any ideals
The question is potent with seriousness. There are four issues as one can observe. First point is that the woman is a single mother. Second point is she has a low income. Third point is she also has a credit that has turned bad. Fourth concern is that she wishes to buy a house. To buy a house, she has to approach a bank that offers credits or loans for new house. Banks, as we all know, check the income proofs and the credit history of a customer. Looking at her bad credit history, there are dull prospects of her receiving a house loan form any bank.
She could have received a loan with the help of her spouse, in case she was not a single mother. If with some help she manages to get a loan, she is not in a position to repay the loan as she has low income and banks charge high interest rates for house loans. She is left with one option to accumulate money and buy a small and simple apartment once she collects enough money to pay the interest for a loan.