A single mother should apply for home loan by fulfilling an additional paperwork as the requirement if a spousal support is needed for the qualification. The loan amount also can be higher as you list the child support, alimony or death benefits as the income sources. A flexible guidelines of qualification can be gotten from the Federal Housing Administration especially for a single mother with borderline credit, minimal down payment, or high load of debt. FHA will insure the loans are from private lenders, repaying the losses if there is nonpayment. The law forbids the lenders from arresting different or stringent, guidelines for single mothers.
Get Formal Divorce or Separation Documentation
It is important to prepare documentation of divorce or death separation with your spouse. The official documents will be required by the lenders to show that you are really a single parent and plan to use child support, alimony, or other qualification. Submit the divorce decree, court orders, separation paperwork, or survivor benefits evidence to the lender.
Fill the Marriage Status
In the marriage status in the application form, check the information based on the fact of your life; Unmarried or Separated. Those who are divorced, widowed, or single should check the Unmarried status box. It is also including the dependent children if they are included on your tax. Write the numbers of children and the ages on the provided lines.
List Your Income and Liabilities
On the loan application, list your liabilities and income because the lenders need the income, assets, employment and also debt information of those who will responsible to the loan. If you are separated, the information about your spouse’s debt is also required. The joint debts with your spouse will be also counted. But the shared debt will be ignored if you can prove that your ex is responsible to the debt account. Add the child support and alimony as well as the description and your income on the underneath lines.
The Down Payment
The down payment should be 3.5% or higher. The funds should be your own money or from allowable gift donor like nonprofit or family member. For the low sum of down payment, you also should pay the insurance for the FHA mortgage every month along with the loan payment, homeowners insurance and property taxes. The income, death benefits or other spousal support should meet the ratio standards of FHA. Find some information about the FHA mortgage before you apply for home loan as a single parent.