Purchasing your first home as a single mom can be a real challenge; however, if you’re residing in Massachusetts and purchasing your home for the first then, you can receive a great deal of support through assistance programs and affordable loan options. In most cases, repeat homeowners can also avail of homeownership programs and affordable mortgages if they meet the program’s eligibility criteria. Massachusetts has plenty of housing loan assistance for single moms ranging from educational courses, homeownership counseling, affordable mortgages, down payment assistance grants, and other programs so that single moms can purchase a home sooner and raise their kids in a safe and secure environment.
What Are The Different Home Loan Programs For Single Moms In Massachusetts?
There are different home loan options available to first-time home buyers, including single moms throughout Massachusetts, including zero down payment programs, low down payment programs, city and county programs, alternatives to government-backed mortgages, etc. Every loan program has its qualification requirements; therefore, before applying for a loan, it is essential to determine the ones you can meet. Also, before deciding to purchase your first home as a single mom in Massachusetts, it is essential to know the mortgage cost in advance.
Zero Down Payment Loan Programs For Single Moms In Massachusetts
One of the first steps single moms in Massachusetts should take to purchase a home is to look for down payment assistance programs. Zero down payment loan programs like VA or USDA loans do not require eligible candidates to make any down payment while purchasing a home.
1. USDA Loans
These loans are designed for low-income Americans in the rural region. These loans provide them an excellent opportunity to attain homeownership goals through varieties of grants, loans as well as loan guarantee programs. The United States Department of Agriculture provides USDA loans in Massachusetts through the Rural Development Guaranteed Housing Loan Program. These loans have low fixed-rate interest, low mortgage insurance prices, and reduced origination fees. Single moms with low credit scores can also qualify for these loans if they are willing to purchase a home in rural areas.
2. VA Loans
Private lenders issue VA home loans, which the United States Department Of Veteran Affairs guarantees. This is why interest on VA loans is relatively low compared to conventional mortgages. Single moms with low credit scores can also qualify and get approved for these loans quickly. But not everyone can qualify for a VA loan as these loans are offered only to veterans, military service members, and their eligible family members or spouses. VA loans include Interest rate reduction refinance loans, Home purchase loans, Native American direct loans, and Cash-out refinances loans.
Low Down Payment Single Mom Home Loans In Massachusetts
Single moms can avail of low down payment loan programs to purchase a property with less than 20% down payment. The two popular low-down-payment loan programs in Massachusetts are FHA and Conventional loan programs.
1. Freddie And Fannie Loans
Conventional loans are a reasonable alternative for a lot of single moms and first-time home buyers who are aspiring to purchase a residential property. These loans can have strict eligibility requirements compared to government-backed loans. There are two famous Fannie and Freddie conventional loans available in Massachusetts: conforming loans and non-conforming loans. Conventional loans require you to pay a down payment of 3%; however, you may require to pay private mortgage insurance.
2. FHA Loans
Single moms unable to qualify for a private loan can opt for an FHA loan, as this option is ideal. FHA loans have lenient requirements, unlike conventional loans. Single moms who have a credit score of 580 or higher are required to make 3.5% for a down payment. Homebuyers with credit scores ranging between 500 to 579 can also apply for these loans; however, they must put down around 10% of their home purchase price. Private mortgage lenders provide these loans with a payment period of 15 to 30-year terms and a fixed interest rate. The maximum debt-to-income ratio that borrowers should have is 56.9%
Massachusetts Home Buyer Loan Programs
The link to a wide range of resources about state and federal mortgage products is provided by the Department of Housing and Community Development in Massachusetts. You can check these mortgage products while buying a house in this state for the first time. If you’re looking for the best alternatives to government-backed loans, consider the following option.
This is a state agency that provides below-market rate mortgage loans as well as down payment assistance to single moms and other first time home buyers who belong to the low-income category in Massachusetts. MassHousing provides down payment assistance of up to $50,000 to eligible candidates in more than 28 mid-sized cities. Single moms can avail of low and fixed-interest-rate home loans with no hidden fees from MassHousing.
2. ONE Mortgage
MHP, or Massachusetts Housing Partnership, is an affordable mortgage option that is available for eligible homebuyers and single moms in the state of Massachusetts, especially if they are buying a house for the first time. The ONE Mortgage provides a low fixed rate interest loan with a 30-year term. Single moms opting for this loan must pay a down payment of 3% for a single-family home, two-family home, or condominium. Low-income home buyers can benefit the best through this mortgage and are also not required to purchase private mortgage insurance that further helps reduce their monthly payments.
Borrowing money to buy a house as a single mom can be overwhelming, especially if you purchase it for the first time. Purchasing a home is one of the most significant purchases that home buyers have to make; therefore, they must know all the options that are available at their disposal. If you’re facing difficulty purchasing a home in Massachusetts due to credit score or low requirements, you can avail of many down payment assistance programs, first-time home buyers, or afford low-down-payment alternatives of government-backed loans. If you’re unsure of which loan program will be the right fit for you, then you can avail of help from your mortgage lender.