Affording a New House as a Single Parent

 Posted on June 30, 2019 in Divorce Finances

When parents divorce, at least one of them must find a new home for them to live with their children. In some cases, both parents are searching for a home if they sell their marital home. It can be difficult to purchase a house as a single parent. You must find a home that is within your price range but still meets your family’s needs. It may also be more difficult to receive a mortgage as a single parent. To purchase a home, you will need to plan ahead and use the resources available from your divorce agreement.

Assess Your Situation

Before hitting the housing market, you must identify what you need and what you can afford. Your needs may depend on how many children you have and their ages. Young children of the same gender may be fine with sharing a room, but older children need more privacy and space. Your housing expenses are a major component of your budget after divorce. Besides your job income and living expenses, you must consider divorce-related assets and expenses, such as:

• The money you receive or pay in spousal maintenance;
• Assets you received as part of the division of property; and
• The amount of your income that is required to pay for child expenses.

It may be unwise to devote all of your available assets toward purchasing a home if you can find an acceptable home at a lower cost.

Loan Programs

Getting approved for a mortgage can be difficult if you have a tight budget or poor credit history. To receive a home loan from most financial institutions, you must meet their debt-income ratio requirements and make a down payment of 10 to 20 percent of the loan. If you cannot afford a loan from a private lender, there are government-sponsored housing loan programs that are meant for people with lower incomes. The U.S. Department of Housing and Urban Development can work with you on finding affordable housing options. The Federal Housing Administration can help you obtain a mortgage by backing it and assuming the risk. There are housing programs available for veterans of the U.S. armed forces or people who live in rural areas. You should start with your local housing authority to determine what programs are available in your area.

Contact a Kane County Divorce Attorney

Your ability to purchase a new home after a divorce may depend on your divorce agreement. A St. Charles, Illinois, divorce attorney at Goostree Law Group can help you receive the assets necessary to afford a home after divorce. Schedule a free consultation by calling 630-584-4800.

Source:

https://www.thebalance.com/single-parent-home-buying-programs-2997428