Being a single parent comes with problems and struggles not faced by others. Being a single parent is not a reason to believe the dream of owning a home is beyond reach. With guidance and support from A&D Mortgage, it is easier to buy a home.
A single parent may have problems purchasing a home of their own. Income may be a question. The length of time in your current residence might be a challenge. There can be any number of hurdles to overcome. However, a non-qualifying mortgage could be just the answer.
Weigh Your Options
As a single parent, review your options before determining if buying or renting is the right choice. As the sole wage earner, your paycheck is the only one to think about when considering the affordability of a mortgage. There is more than just the mortgage to consider. Insurance, property taxes, home maintenance and repairs should be added to the equation.
Pull together a list of your income sources, your assets and debits. Do the math and figure out how much money is left at the end of the month. Take into consideration any upcoming changes such as your children turning 18, or changes in alimony.
Think about job security. Is your job safe enough to handle long-term financial commitments?
When you have a good idea of your current finances, think about:
- Insurance and Property Taxes
- Home Maintenance, and
Insurance and Property Taxes
The insurance and property tax costs are typically included in the monthly payment. The price for insurance depends on where you live as well as which insurer you use. Property taxes vary depending on location and some towns in your region have higher, or lower, taxes than others
The premium is usually split into 12-parts, so a $1,200 tax bill adds $100 to the monthly mortgage payment.
If you are renting, you do not pay these fees directly as they may be build into your rental charges.
Keeping a home maintained reduces the odds of having to pay for a large repair in the future. Routine maintenance by mean keeping the shrubs trimmed, replacing roof shingles — or something in between.
By keeping the maintenance undone, your home may be at risk for insects, water dames or other issues. Often, you can do the maintenance yourself or get a friend to help out. Sometimes you have to break down and hire someone.
Regardless of which maintenance path you go, the costs should be factored in as you make your decision and can guide you about the amount of money to put aside each month toward maintenance.
If you decide to rent, this is the responsibility of the landlord.
Before buying, have your home inspected by a professional. The inspector will let you know about any major repairs which may be imminent. Major repairs could include the furnace, a leaky roof, or problems with the foundation.
Cosmetic issues such as old flooring, broken cabinets or ugly wall paper should be looked at and the cost added into your budget.
There also may be surprise issues such as a hot water heater failing.
If you rent, the landlord normally takes care of repairs, although he may not handle cosmetic issues.
Advantages and Disadvantages of Owning a Home
Owning a home can provide a sense of independence and achievement. A homeowner can remodel, start a garden, add — or take out — trees and tear down walls. Try replacing entire windows in a rental.
A home, as an investment, can permit the homeowner to write part of the mortgage payment off taxes. As the value increases, the equity grows and the home can be resold at a profit.
Keep a home for the long-haul and eventually it can pay off during retirement.
It can be extra difficult to leave a home that you own, especially if you’ve owned it for some years. Job situations can change suddenly and you may be forced to sell your home fast. What happens if you can’t afford the home any more?
Once you have weighed the pros and cons for tending and buying, you can decide that buying a home is the right decision.
If you are having problems finding housing for your family and you are not able to buy a home right now, call NonQMHomeLoans.com. We are specialists at non-QM home buying. They have helped thousands of others. They can help you as well.
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