Single Mom Home Loans California

Single Mom Home Loans California

Purchasing a home on one source of income can feel like an impossible task for single mothers in California. Fortunately, low-income housing loans in California for single moms are affordable and available. If you know where to look for a home loan for a single mom and how to apply for it, you can fulfill your dream of having a permanent home.

Tips To Find Low-Income Housing Loan In California

Single mothers who have explored a lot of options and are yet finding it challenging to obtain a home loan can perform the following things to locate low-income housing in California

1. Seek Help From A Co-Signer

Single mothers who have poor credit in California should find a co-signer. Private money lenders know that often lousy credit happens to good people, and therefore, they permit them to have someone trustable to cosign their mortgage. Cosigners tie their credit to their property directly and enable them to obtain a loan that would otherwise have required a higher credit score. Co-signers should always be trustable friends or family members.

2. Rent To Own Option

A good option for single moms finding loans in California is to locate a rent-to-own option. A rent-to-own contract is a standard rental contract in California with an initial upfront payment and enables you to buy a home in full after the lease has ended. This is the right fit for single moms in California who want to obtain housing but cannot apply for a home loan or afford a loan due to the financial crisis.

3. Down Payment Assistance

Many single moms in California hesitate to buy the home of their dreams as they are worried about making an initial down payment. Even though some can make monthly payments, spending thousands of dollars at a time is beyond the capability of low-income home buyers. You can take help from the California Housing Finance Agency, which offers many down payment assistance programs such as the Carl Plus loan.

Single Moms Home Loans In California

Following are the best mortgages that are available for single mothers and low-income residents of California who are looking for low-income housing and affordable loan options.

1. Conventional Home Loans For Single Moms

One of the most common forms of obtaining home loans in California is conventional loans. However, they are designed only for upper or middle-class customers and are not a good option for low-income home buyers or struggling single mothers. Conventional loans come with high income and credit requirements. Conventional home loans for single mom in California require a minimum credit score of 660 to 700, and applicants must pay 20% of the home’s upfront value.

2. FHA Loans For Single Mom In California

FHA loans are available throughout the United States, including California. The Federal Housing Administration is there to enable low-income single mothers to seek a house. FHA loans are designed exclusively for low-income borrowers and single moms. Most FHA loans either have low credit requirements or low down payment criteria. This is not the case with private money lenders or private banks which come with high credit and down payment requirements so that they can offset the risk of a loan. If you default on your loan because of financial difficulty, the FHA will pay a portion of the loan to the private lender. Single mothers with a credit score of 580 or more must pay a down payment of 3.5%, whereas single moms with credit scores up to 500 must pay a down payment of 10%. FHA loans combine expanded eligibility requirements, low minimum credit requirements, affordable down payments, and a maximum debt-to-income ratio of 50%.

3. VA And CalVet Loans For Single Moms In California

The Department Of Veterans Affairs, or VA, is an institution of the federal government that provides insurance on VA loans. As the Department of VA insures these loans, these loans come with generous eligibility requirements, unlike FHA loans. The availability of these loans will help you to save a lot of dollars as you need not make private mortgage insurance or down payment, which are required on conventional and FHA loans. CalVet loans are similar to VA loans except that they are insured by California VA instead of the federal government and have a lower interest rate. Therefore, single moms can save more money over time. Single moms who are veterans, widows of veterans who went missing or killed in action, or those who served for a minimum of 181 continuous days of active duty are eligible to apply for VA or CalVet home loans for single moms in California.

4. CalPLUS Home Loans For Single Moms

These are mortgages for first-time home buyers designed exclusively for low-income home buyers, including single moms in California. CalPLUS Home Loans are FHA-insured mortgages that come with higher rates of interest compared to traditional loans. However, the positive side is that low-income homebuyers can cover almost all of the initial down payment using a deferred down payment assistance loan, which is not required to be paid off until they have finished paying all mortgages. Single moms who are facing an obstacle in making a down payment up front and are not veterans can consider applying for this loan program.

5. USDA Loans For Single Moms

The United States Department Of Agriculture Rural Development Loans is a famous home loan program for low-income single moms. These loans have significantly higher income and credit requirements than the VA or FHA loans and are usually a bit lower than conventional loan requirements. The best thing about these loans is that low-income home buyers, including single moms, can waive the initial down payment and pay off the loan in monthly installments.


Obtaining a loan as a single mom in California with a low income or bad credit is sometimes beyond one’s control. With home loans and a down payment assistance program, you can fulfill your dream of becoming a homeowner. There is help and financial support available to low-income single mothers in California who wish to obtain permanent housing.

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