Best Single Parent Loan Options
Mortgage Broker
Juergen Schmid Mortgage Broker
Published on December 6, 2022

Best Single Parent Loan Options

As a single parent, you are likely most concerned about raising your children and covering your bills. Buying a home can seem like a huge undertaking. I have good news! There are loan and assistance programs available to help single parents purchase a home. And I have access to the best loan options…

In California, there are programs or subsidies that can help a single parent purchase a home but the programs are marketed under a different name such as “first-time homebuyers” and “low-income buyers”.  Programs are also available based on your county, city and sometimes even the neighborhood you are looking to purchase in. Here are some of the features of loan programs geared toward a single parent:

  • Single parents often have a smaller budget, so I look for loan programs with looser eligibility requirements.
  • Single parents who fall into the lower-income bracket may also need a loan with lower down-payment options. I have access to these programs as well.

Single parents at home with child

Here are some of the best loans options for a single parent:

FHA Loans

FHA (Federal Housing Administration) loans are especially popular for single parents. Whether you have never married, are newly divorced or become displaced from your home, these loans are government-insured and are typically easier to qualify for. Some of the key benefits to the FHA loans are:

  • Low down payment of 3.5%
  • Low monthly loan insurance
  • Flexible credit score requirements
  • Down payments can com from your savings or gifted funds from a family member

To be eligible as a divorced parent, the only primary residence you have ever owned must be with your former spouse.

VA Loans

If you’re a single service member, veteran, or an eligible surviving spouse, a VA loan could be a great option.VA loans offer money-saving benefits and services for first-time borrowers, such as:

  • No mortgage insurance
  • Zero down payment
  • Low-interest rates
  • Credit score requirements may be lower, depending on the lender.

This loan is attractive for single moms and dads because you can purchase a home with little to no savings with no penalties. This is one of the best loans available if you meet eligibility.

USDA Loans

The U.S. Department of Agriculture (USDA) offers a variety of loans to help single parents with low and moderate incomes in rural areas. Many of the programs are offered in areas surrounding popular metropolitan cities.  The benefits of the USDA loans include:

  • Zero down payment
  • Low-interest rates
  • Mortgage insurance premium is typically lower than FHA loans.

These loans do have maximum income requirements to qualify, so I will verify your income meets the qualifications.

Conventional Loans

This type of loan is best for salaried employees or consistent earners with good credit scores and some savings. You can still get a down payment as low as 3% on a conventional loan, if this is  your first time purchasing a home.

Single Parent Assistance Programs

Local HUD (US Department of Housing and Urban Development) offices have resources and housing counselors to help single parents frind housing options that fit their situation. Similar to the services I provide as a wholesale mortgage broker, they can answer questions about the home-buying process and offer you assistance with lesser known local home buying programs.

HUD also assists individuals to obtain homeownership or rent subsidies for housing. For example, the Housing Choice Voucher (HCV) homeownership program allows families that are assisted under the HCV program to use their voucher to buy a home and receive monthly assistance in meeting homeownership expenses.  To participate, you must meet specific requirements regarding employment and income so it is best to research different programs available to you.

Single parents with kids on couch at home

Which is the best loan option?

The best loan option for you will depend on your individual circumstance and the prospective property. As a top wholesale mortgage broker, I have access to creative loan program options to accommodate your own specific needs and I can typically offer lower rates. Please call, email or send a message through my website to discuss your personal situation.

Mortgage Broker
Juergen Schmid Mortgage Broker
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(619) 459-5700