Home Buying Guide
Your complete guide to buying your first home as a single parent, including financing options, assistance programs, and step-by-step guidance.
Ready to Buy? You may be ready if you have stable income, good credit (580+), and can afford 3-5% down payment plus closing costs.
Financial Readiness Checklist
Assess if you're financially ready to buy
Income Requirements
- Stable employment (2+ years preferred)
- Debt-to-income ratio below 43%
- Housing costs under 28% of gross income
Credit Score Goals
Excellent (740+)
Best rates
Good (670-739)
Good rates
Fair (580-669)
FHA eligible
Money You'll Need
Upfront costs for home purchase
Down Payment Options
- FHA Loan: 3.5% minimum
- Conventional: 3-5% minimum
- VA Loan: 0% (if eligible)
- USDA Rural: 0% (rural areas)
Additional Costs
- • Closing costs: 2-5% of home price
- • Home inspection: $300-500
- • Appraisal: $300-600
- • Moving expenses: $500-2000
- • Emergency fund: 3-6 months expenses
Example for $200,000 home:
- Down payment (3.5%): $7,000
- Closing costs (3%): $6,000
- Total needed: $13,000+
Benefits of Homeownership
Why buying makes sense for single parents
Financial Benefits
- Build equity instead of paying rent
- Tax deductions for mortgage interest
- Stable monthly payments
- Potential property value appreciation
- No rent increases
Family Benefits
- Stability for children
- Freedom to customize your space
- No landlord restrictions
- Sense of accomplishment
- Community roots
Rent vs. Buy Calculator
Simple comparison tool
Monthly Rent
$1,200
No equity building
Monthly Mortgage
$1,100
Building equity
5-Year Comparison
- Rent paid: $72,000 (no equity)
- Mortgage paid: $66,000 + $25,000 equity
- Net difference: $31,000 ahead