How to Score a Home with the Help of Loans for Single Mothers

If you are a single mother, you are stronger than you think you are.

You are more powerful, and smarter than other women your age because that’s what single moms have to be. If you are a single mother, it’s not easy. Apart from living on tight finances, single mothers also have to face the daunting task of getting approval on home loans.

From approval of mortgage to repayment of home loan, single mothers are always battling between income and time. Apart from the pressure of paying bills and raising children, there is a pressure of deadlines for your home loan repayment.

We all can admit that single moms have life a lot harder.

But how can you deal with it?

We have a list of solutions for making home loans for single mothers, easy.

Being a single mother doesn’t mean you have to suppress your dream of owning your own home.

Home Loans For Single Mothers

If you are thinking of applying for a home loan, you would need to have a sound debt to income ratio (DTI), which should preferably be not more than 41%. This means that your debt is not more than 41% of your income.

Another factor which can help you snag a home loan easily is a good credit score. Although home loans for single mothers are tough due to the dependence of family on only one income source, a good credit score can compensate for the lack of income sources.


There are majorly two types of mortgages: Conventional and Government-backed.

Conventional mortgages are provided or guaranteed by private lenders like banks, private companies, etc.

Government-backed home loans have attractive interest rates and simpler qualifications, which is why they are usually preferred for home loans by single mothers.

Here is the break-up of home loans offered by government and those by private lenders.

Government-Backed Home Loans For Single Mothers

FHA Loans

FHA loan is a government-backed mortgage security run by a branch of HUD. If you opt for this, you would also be paying for mortgage insurance. This insurance will rescue you if you happen to default on the loan. It allows lenders and home sellers to pay for the borrowers’ closing costs like appraisal, credit report, etc.

The only downside of taking an FHA loan is the high insurance premium, which is almost double than what other loans are charging. Here is where you can find out if you are eligible for FHA.

  • Minimum Credit Score: 500
  • Down Payment: 3.5% for credit scores above 580; 10% for credit scores from 500- 580
  • Loan Terms: 15 or 30 years

USDA Loans

Bagging a USDA loan is tough or easy, depending on the property location. If you are eyeing on this loan, make sure you are eyeing a property in USDA-eligible geographies. There are no down payments, thereby saving you a lot of money, which would have otherwise been spent on upfront expenses. In other words, USDA works on 100% financing. Moreover, these loans are guaranteed by the U.S. government and charge the least mortgage insurance premium, thereby becoming a top pick for home loans for single mothers.

  • Minimum Credit Score: A minimum of 640
  • Down Payment: Not required – 100% financing
  • Loan Terms: 15 and 30-year (fixed rate)

Veterans Administration (VA) Loans

VA loans are backed by The Veteran’s Administration, which is why those eligible for these loans are considered fortunate for reasons more than one. No headache of monthly mortgage insurance, no down payment, no regard to credit score, lower closing costs and the eligibility of the seller to bear them are the vital ingredients of making VA Home Loan one of the most seamless home loans for single mothers.

Unremarried spouses of veterans who are killed or missing have a high probability of becoming eligible for the VA loan.

  • Eligibility: Veterans who have served in the U.S. Military services for 90 days or more in wartime, 181 days or more in peacetime and delivered services for 24 months or for the entire period veteran was ordered for.
  • Documents Required: DD-214, Verification of Child Care Expenses, Certificate of Eligibility, Form 26-1880, Commanding Officer Statement of Service.
  • Loan Terms: 15 or 30 years
  • Funding Fee: 2.15% of the loan amount (on both purchase or refinance)

Conventional Home Loans For Single Mothers

If you are not eligible for any of the home loans discussed above, conventional home loans are always open for you. The ideal credit score for conventional home loans, however, is 680 to 700. As a matter of fact, the credit score is indirectly proportionate to the interest rate. Higher the credit score, lower the interest rate. Also, the ideal DTI ratio for conventional home loans is anywhere from 36-42%.

Credit score requirements, down payments, mortgage insurance premium may vary between lenders. Hence, making an informed decision is the key if you want to leverage the possibilities of saving some funds. The repayment terms for these loans range from 10 to 30 years.

Although, on conventional loans having 20% or less down payment, you will have to shell out extra on PMI (Private Mortgage Insurance). It is because of the PMI that conventional home loans are always the last option for home buyers.

Quicken Loans, AmeriSave, New American are some of the most popular conventional home loans which are known for their reliability and comfort.

Home Loans Assistance Programs – Rental & Financial

There are always many options to procure home loans for single mothers given that there are specific homeownership programs, loans, and grants operating in your area or state. Some programs help with down payment, while some aid in payment of insurance expenses.

Some states also run assistance programs for special categories of people, based on their professions like a teacher, police officer or other public servants.

‘Homes For Heroes’, provides down payment assistance of from 3-5% of the loan amount. Notably, the amount waived off is not to be repaid, thereby saving home buyers a good chunk of money.

You may also seek assistance from Rural Rental Assistance (RRA) if your home property lies in areas that are eligible for Rural Rental Housing (RRH), Rural Cooperative Housing (RRH), or Farm Labor Housing (FLH). This can help you save a significant percentage of your rental expenses and who doesn’t like savings, right?


To rescue single mothers from the overburdening web of home loans, there are various assistance programs and grants available across the state and the country. There is a different best option for different buyers, depending on your credit score, income stability, DTI, etc.

Consulting a bonafide agent or a trusted lender can be a good idea. They can help you pick the right program which best suits your needs.

With the Internet by your side, everything is within your reach. All it requires you to do is thorough research, contacting the right persons, finding the perfect assistance program in your area and lastly, playing it smart. With the multiple home loans assistance programs operating today, home loans for single mothers isn’t that much of a battle as you thought it was.

Hope this article helps you find a home which you and your child can call your own! Good Luck.


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