Home Loans for Single Mothers

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Home Loans for Single Mothers

The going is not easy for single mothers for getting mortgages as the requirements are stringent. They have to have a credit score of more than 700 for procuring the loans with lower rate of interest.Let us see the options that are available for single mothers.Manufactured Home LoansThe Federal Housing Administration (FHA) takes the responsibility of insuring Title I loans. The FHA does not give loans. The Title I loans can be used to buy manufactured homes or a developed lot on which the person plans to raise a manufactured home. The interest charge is fixed. The insurance given by the FHA assures the lender recovery of the loan in case of default by the borrower. The guarantee reduces the interest rate charged on the borrower. The lender looks into the credit history of the borrower. Unless someone has a very bad credit history it does not disqualify a borrower from getting a loan.Good Neighbor Next Door MortgagesThis is a good plan under which a single mother can buy a HUD home listed under the 'Good Neighbor Next Door Sales Program'. The mothers should be working as emergency medical technicians, school teachers, firefighters, and law enforcement officers. The eligible women can buy a HUD home with a down payment of $100 as a FHA insured mortgage. The advantage is that the homes can be purchased at 50% off listed price. The purchaser is required to stay in the house for a period of thirty-six months and get a second mortgage and also a note for discount.FHA Insured MortgageFHA insured mortgages play an important role in home loans for single mothers. The borrower just makes a down payment of 3.5 percent based on the price that the house is going to be purchased at. And, one need not spend money to get a private mortgage insurance (PMI).

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