Single Parents: 5 Home Buying Resources

Don't give up if you're a single parent or a single-income family who wants to own a home. Single-parent home-buying programs are available to help you with everything from locating affordable housing to obtaining a mortgage. A variety of state and federal government departments and some non-profit and community organizations offer these assistance programs. As you progress through the home-buying process, many will offer financial and educational assistance. Learn more about single-parent home buying assistance programs.

Contact the Housing Authority in Your Area

Find out what specific homeownership programs are available in your state before looking for national home-buying programs. These programs can provide a wide range of assistance, including:

Loans that require less than a ten percent down payment
Grants to help with closing costs or a down payment
Depending on your mortgage, you may be eligible for tax credits.

Many of these programs have income limits or require you to use approved lenders, and they're geared toward single parents, so read the fine print to see if you qualify. They may require you to attend homeowner education classes in exchange for assistance. To do so, go to the Public Housing Authorities Director's Association's website and look for your state's local housing authority.

Attend a Housing Counseling Session with The Department of Housing and Urban Development (HUD)

The US Department of Housing and Urban Development is abbreviated as HUD. Your local HUD office has resources to assist you in purchasing a home, including the ability to work with a professional counselor trained to assist you in locating housing options in your area. A HUD housing counselor can help you with questions about the home-buying process, getting a loan, and more. They may also be able to inform you about various home buying programs available in your area, including some that are less well-known and that you may not be aware of otherwise. As you begin the home-buying process, many programs offer financial and educational assistance.

Consider a HUD-assisted purchase

Another option is to purchase a home directly from HUD, which sells properties in all 50 states. You can learn more about HUD properties by going to the HUD website and searching for homes for sale in your state. HUD properties are available in a variety of neighborhoods throughout a city or geographic area, and not all of these neighborhoods will be a good fit for you and your family. Before you invest, do your research and get to know the area.

Fill out an application for a Habitat for Humanity home

Habitat for Humanity is a well-known organization that builds and repairs homes for low-income families. It is one of the most well-known organizations that provides practical and financial assistance to single parents. Start by learning about the criteria the organization uses to select homeowners if you want to be added to its list of potential homeowners. Habitat for Humanity considers the following factors during the selection process:

The need of the person who is applying for a home
The willingness of an individual to work with Habitat for Humanity.
The ability of the individual to repay the interest-free loan

Single parents who want to take part should expect to be heavily involved in the construction of their homes. That means getting your hammer and tool belt out and getting to work, but don't be intimidated: Habitat for Humanity offers training. Working on a home that is being built specifically for you will only add to the value of your investment. To be considered, go to the Habitat for Humanity website and fill out an application.

Using an Individual Development Account to Purchase a Home (IDA)

A community organization usually sets up an individual development account, which is a matched savings account. These are intended to assist low-to-moderate-income families in saving money for a home, education, or small business start-up. Organizations that offer IDAs may sometimes match your savings dollar for dollar. The Prosperity Now website can help you find out which organizations in your area offer IDAs. However, read the fine print carefully because there may be limitations on how much you must save, where you can buy a home, and when you can buy one.

Most Commonly Asked Questions (FAQs)

Is it possible to use child support payments to qualify for a mortgage?

Yes, your lender can use child support payments to qualify you for a mortgage in the same way that wages can.

Is it necessary to be a single parent to receive homebuyer assistance?

While some home-buying programs, such as FHA, are designed for single-parent families, married or cohabiting couples may also be eligible for some of these programs.

Is it taxable if a single parent receives a down payment assistance grant?

Down payment grants are usually exempt from taxation. Other types of down payment aid, such as funds from a seller, may be required to be reported on your federal income tax return. They won't be taxed as income, but they could be used to lower the home's cost basis. More information is available from a tax professional.