Government Assisted Home Loans

I purchased my home as a single mother with one income. No, I didn’t have a job that could pay a normal mortgage, nor did I have a down payment. But with the help of the federal government, I am the proud owner of a three-bedroom home and almost one-acre of land.

I received a loan through the Rural Development Housing program. They provided me with a 100 percent 33-year loan (meaning I didn’t need a down payment). While the loan process took longer than a normal loan probably would have, it was well worth the wait. There were also some conditions that I had to follow that may not have been an issue with a conventional loan, such as I could not purchase a mobile home and certain building requirements had to be met.

There are several government subsidized home loan programs available that can help single parents purchase their first home.

Federal Housing Administration (FHA): FHA is a part of the US Department of Housing and Urban Development (HUD). They offer assistance with obtaining a low down payment and closing costs. They work with people buying their first home, purchasing a fixer-upper, and making energy improvements.

HOPE for Homeowners: If you currently own your own home and are at risk of losing it due to default or foreclosure, this program may be able to help. HOPE for homeowners provides a refinanced loan with a more affordable payment.

Rural Development Housing: This program is a part of the US Department of Agriculture (USDA). It offers loans in rural areas. The program offers either no or low down payments, and affordable monthly payments.

State Government Assistance Programs: Your state may also have their own subsidized loan program. Check with your local bank, housing authority, or online to find out if you qualify.