Single mothers have to face a lot of financial difficulties and challenges. Every single mother deserves to overcome the challenges in a safe, affordable, and secure place that they can call it to be their own. There are a lot of options available for single moms in Ohio that can help them to overcome their housing concerns even if they have bad credit or low income. Each program has its own down payment requirements or credit score criteria.
Are There Home Loans For Single Moms In Ohio?
Yes, there are multiple down payment assistance programs and affordable home loans that assist single moms in Ohio to refinance or purchase a home. A lot of stress is associated with being a single mom in Ohio. The need for a secure and comfortable place for their children adds more stress for low-income single mothers who often do not qualify for home loans or mortgages. Many programs enable them to purchase a new home or continue to make down payments for their existing home. These options include VA, USDA, FHA loans, mortgage tax credits by the Ohio Housing Finance Agency, etc.
Different Home Loans For Single Moms In Ohio
There are a lot of financial assistance programs and resources provided by the federal government so that single moms can quickly locate Ohio mortgages. If you need help purchasing a house in Ohio, then the below-mentioned resources will help you to get started.
1. FHA Loans
The Federal Housing Administration insures the FHA loans for Ohio single moms. The FHA guarantees a part of the mortgage to the participating money lenders and promises to pay them back some money if borrowers default on their mortgage payments. Hopefully, this situation won’t arrive. However, the extra protection level will make lenders comfortable and secure in giving out loans to eligible applicants who would otherwise have been turned down immediately. A single mom with a low income or bad credit in Ohio will benefit the best from this loan. FHA loans come with affordable down payments and lower eligibility requirements. Single moms who have a credit score of 580 or higher are eligible to seek an FHA loan, where they have to pay only 3.5% of the home value. This is much more affordable than the 20% down payment required by traditional home loans in Ohio for low-income single moms. With credit scores less than 580, single moms have to pay around 10% of the down payment, which is also highly affordable.
2. USDA Loans
The United States Department Of Agriculture offers loans to single moms looking to purchase a property in a rural region of Ohio. USDA loans offer many benefits, such as long payback periods, easy credit and income requirements for low-income buyers to qualify, and 100% financing, which can be guaranteed in most cases. Single moms cannot work full-time because they raise their children single-handedly. USDA loans will be the right fit for them as it comes with affordable monthly payments. The program requires single mothers to reside in rural areas to apply for this program.
3. VA Loans
VA loans offer similar benefits to that FHA loans; however slightly better in some cases. For example, instead of providing low down payment assistance, many VA loans require no down payments from low-income borrowers, primarily single mothers. VA loans also do not require eligible candidates to pay private mortgage insurance, and this, in turn, will save thousands of dollars over the long run. As this program comes with lenient income and credit requirements, it is one of the most helpful resources for single moms looking for cheap home loan options. But the only downside of this loan is that this option is available to armed service members and veterans only. The VA stands for the Department of Veterans Affairs, which is an organization that provides these loans. If you’re a single mom who has served militarily previously or an eligible spouse, then you can apply for this program.
4. Freddie Mac Home Possible® Mortgages
Low-income or highly low-income borrowers can avail of possible home mortgages where they have to make just a 3% down payment. The Freddie Mac Home Possible Mortgages enable single mothers to use different sources to fund down payments, including family gifts, secondary financing, sweat equity, and employer assistance. This loan option is a right fit for low-income borrowers who have a credit score of a minimum of 660. When you pay around 20% of your loan, the mortgage insurance will get canceled, lowering your mortgage payments.
5. Fannie Mae Homeready® Mortgages
Down payments on Fannie Mae HomeReady mortgages are as low as 3% for single mothers and other eligible low-income borrowers. To apply for this option, applicants should have a minimum credit score of 620. Applicants having a credit score of 680 or higher will have better interest rates. Like the Freddie Mac Program, HomeReady loans provide gifts and grants to low-income borrowers to facilitate flexible down payment financing.
6. Mortgage Tax Credit
Many states in America provide home-state tax exemptions for low-income residents, and Ohio is no exception. The Ohio Housing Finance Agency or OHFA provides a lot of programs and assistance for low, to moderate-income home buyers, including first time home buyers, so that they can attain homeownership goals. It provides a tax credit of around 40% of mortgage interest paid annually, or up to $2000, whichever is less. If you are looking for ways to get home help for single moms in Ohio, then the mortgage tax credit by the Ohio Housing Finance Agency will help you to save a lot of money. To be eligible, you must meet purchase price and income limitations and complete a homebuyer education course for free.
First time homebuyer programs and affordable loans in Ohio will enable struggling single mothers to fulfill their dream of becoming homeowners. Usually, single mothers can qualify for these grants and loan options by providing a recent work history. It will also be a good idea to work closely with lenders in Ohio who might be able to provide discounts or assistance programs.