One of the fastest-growing states in the southeastern part of the USA is Georgia, where real estate prices continue to rise exponentially. This makes it difficult for low-income residents and single mothers to seek permanent housing. Many fail to obtain home loans because of low income and credit requirements. The Georgia Department Of Community Affairs provides many housing programs and resources so that low and moderate-income buyers, including single mothers, can take a loan and turn their dream into reality. These resources include down payment assistance and first-time home buyer programs, and mortgage loans backed by the federal government.
How To Find Home Loans For Single Moms In Georgia?
The state of Georgia has a lot of opportunities for low and moderate-income earners, primarily single mothers, to secure permanent housing for themselves and their children. If you’re a single mom in Georgia looking to purchase a home for the first time, you can look for government-backed loans and local initiatives. Single mothers can avail of housing assistance through first time home buyer programs, down payment assistance, veteran home buyer assistance programs, and affordable mortgage loans. There are plenty of pathways that will help you to secure your housing if you are unable to secure a conventional loan.
Different Single-Mom Home Loans In Georgia
Single mothers who are first time home buyers can avail a lot of opportunities in the state. The Georgia Department Of Community Affairs considers individuals who have not owned a home over the last three years as first time home buyers. In some targeted areas of Georgia, repeat buyers can qualify for first time home buyer programs. The following resources will help you to secure a loan in Georgia.
1. FHA, Federal Housing Administration Loans
The Federal Housing Administration is a part of the United States Department of Housing and Urban Development, which ensures mortgages for single mothers and borrowers having low credit scores. Single mothers have to select from a list of approved money lenders who are willing to participate in the FHA loan program. FHA loans have competitive interest rates and also require a 3.5% down payment on FHA loans if borrowers have credit scores of 580 or higher, while four borrowers having credit scores as low as 500 are required to pay a down payment of 10% of the purchase price of the house. Borrowers have to pay mortgage insurance on FHA loans which accounts for 1.75% of the upfront fee and annual premiums for the life of the loan unless they make a down payment of a minimum of 10%, which allows mortgage insurance cancellation after 11 years.
2. Freddie Mac Home Possible Mortgages
The Home Possible Mortgage is designed for low and very low-income borrowers having a credit score of at least 660. While opting for this loan, you must make a down payment of 3% on the mortgage. These loans allow borrowers various sources for down payments, such as family gifts, co-borrowers, sweat equity, secondary financing, and employment assistance. Once you pay 80% of your mortgage, the Home Possible mortgage Insurance will get canceled, further enabling you to reduce your mortgage payments and mortgage payment.
3. Department Of Veteran Affairs, VA Loan
Active duty members of the United States military veterans and eligible family members of military members can apply for loans that the Department of Veterans Affairs backs. Single mothers can obtain these loans to purchase, improve or build their homes. VA loans are that they come with lower rates of interest and do not require any down payment. A one-time funding fee may be required that will be rolled into their mortgage.
4. United States Department Of Agriculture USDA Loans
Moderate-income borrowers, including single moms, can use USDA loans in specified rural areas. The United States Department of Agriculture guarantees these loans and does not require any down payment from borrowers. USDA issues loans directly to low or highly low-income people. Single moms looking to purchase properties in rural areas should check the official USDA website to learn about loan basics, property, and income eligibility of USDA loans.
5. Georgia First Time Homebuyer Loan Program, George Dream
Georgia Dream Homeownership Program by the Georgia Department Of Community Affairs provides 30-year fixed-rate conventional loans and even government-backed USDA, FHA, or VA loans with lower interest rates. This homeownership program is available to single mothers who are first-time buyers. To be eligible for the program, the borrowers must meet the purchase price and income limits. Home buyers should have a credit score of 640 or higher. The program requires them to have liquid assets less than $20,000 or 20% of the property purchase price, whichever is higher. Their income limits should be between $74,500 to $86,000, depending on their location and household size. First-time home borrowers will get assistance up to $7500 through a 0% no monthly payment second loan.
6. Local First Time Home Buyer Assistance Programs
Atlanta, Savanna, and Macon have immense homeownership assistance programs for low-income borrowers and single mothers in Georgia. For instance, Invest Atlanta provides many down payment assistance programs in different city areas. Invest Atlanta is the economic development authority that enables borrowers, including first time home buyers, to seek a home. Some options are HOME Atlanta 4.0, Vine City Renaissance Initiative, Atlanta Affordable Homeownership Program, and InTown Mortgage Assistance Program. You can seek help from the real estate agent or loan officer to locate local programs that will be the right fit for you. If you’re looking for single mom home loan opportunities in Georgia, then be sure to check with the county, city, and local community, including home advocate organizations where you can qualify for additional resources.
Now that you have an overview of all the options that are available for single moms in Georgia, you are ready to get started on your home purchase. A list of participants in mortgage lenders is provided by the Georgia Department of Community Affairs, which will help you to navigate through the process. Irrespective of which program you choose, you must shop for the best mortgage offers and rates.