Being a single mother or single parent often brings financial challenges that make it difficult to buy a home or pay rent on time. Luckily, many housing grants are available that make housing costs more affordable. Here are twelve of the best housing grants for single mothers.
12 Housing Grants for Single Mothers
- National Homebuyers Fund
- Bridge of Hope Housing Assistance
- Good Neighbors Next Door
- Bank of America’s Community Homeownership Commitment
- Housing Choice Voucher Program
- Community Seconds
- The Chenoa Fund
- Community Development Block Grants
- Habitat for Humanity
- Operation Hope
- Shelter Care Plus Program
- Local Housing Authority Grants
1. National Homebuyers Fund
The best housing grant for single mothers is available through the National Homebuyers Fund. This non-profit organization provides grants and down-payment assistance to single mothers and low-income homebuyers. They provide closing cost and/or down payment assistance to qualified single mothers and offer access to funding up to 5% of the mortgage amount.
Requirements
- Credit Score: Borrowers must have at least a 640-credit score.
- Debt-to-income Ratio: Borrowers must have a debt-to-income ratio of 45% or less.
- Loans: Obtain a conventional, FHA, VA, or USDA loan.
However, you don’t need to be a first-time homebuyer. Additional qualifications vary depending on the state, but the National Homebuyers Fund can be an excellent way for single mothers to overcome some financial barriers to buying a home.
2. Bridge of Hope Housing Assistance
Another one of the best housing grants for single mothers is from Bridge of Hope, a humanitarian outreach program affiliated with the Christian Church. Bridge of Hope Housing Assistance grants are designed to reduce homelessness and assist low-income single parents and families with housing assistance. They have a 12 to 24-month program that helps single mothers secure housing through counseling, assistance with applications, and financial aid for security deposits, rent, and utilities. The program is available nationwide and typically run by a local church or ministry.
Requirements
- Single Parent Status: Applicants must be single parents or guardians with custody of at least one child under the age of 18.
- Homelessness or Risk of Homelessness: Applicants must be currently homeless or at imminent risk of becoming homeless.
- Low Income: Families must meet certain income criteria, often defined as low or very low income based on local median income levels.
3. Good Neighbors Next Door
The Good Neighbors Next Door Program is an initiative offered by the Department of Housing and Urban Development that helps reduce the cost of purchasing a home for qualified borrowers. You don’t have to have children to qualify, but it is a great program for single parents struggling to purchase a home and work in one of the qualifying occupations.
Requirements
To qualify for the Good Neighbors Next Door program, you must be employed in one of the following professions:
- Full-time teacher (pre-K through 12) at a state-accredited public or private school
- Full-time law enforcement officer working for the state, local, or federal government
- Full-time first responder (such as an EMT or firefighter) in a department run by a federal, state, or local agency
Applicants who qualify can get a home through HUD for 50% of its value, which can be a huge savings for single parents struggling to purchase a home.
4. Bank of America’s Community Homeownership Commitment
Bank of America’s Community Homeownership Commitment is another excellent housing grant program for single mothers that can be used to cover the down payment and closing costs when purchasing a home. You must get a mortgage from Bank of America, which may have stricter credit and income requirements than other programs. But those who qualify can get a substantial grant to cover some of the costs of buying a home.
Down Payment Grant Program:
- Offers up to 3% of the home's purchase price, up to $10,000, to be used for the down payment in select markets.
- Funds from this grant do not require repayment.
America's Home Grant Program:
- Provides a lender credit of up to $7,500 that can be used for non-recurring closing costs or to buy down the interest rate.
- This grant also does not require repayment.
Affordable Loan Solution Mortgage:
- A fixed-rate loan with a down payment as low as 3%.
- Mortgage insurance is required, and income limits apply to qualify for this loan.
Requirements
Status: Applicants must be owner-occupants.
Income: For properties not located in a low- to moderate-income census tract, the maximum annual qualifying income limit for the borrower/co-borrower is 80% of the Federal Financial Institutions Examination Council (FFIEC) Area Median Income. For properties located in a low- to moderate-income census tract, there are no income limits.
Specifics: The programs are available in select markets, so applicants need to verify availability in their specific location. Credit and collateral are subject to approval. Eligibility is based on income and home location.
5. Housing Choice Voucher Program
The Housing Choice Voucher program is the major program offered by the Federal government to ensure single mothers and other low-income individuals can access safe, affordable housing. Through the section-8 program, qualifying applicants can get a monthly voucher of up to $2,000 to put toward rent.
Requirements
- Citizenship: You must be a US citizen (or eligible non-citizen)
- Income: Your household income cannot exceed 50% of the median income in the county.
Specific landlords and housing authorities may have additional requirements, but Section 8 and the housing choice voucher program can greatly reduce monthly rental costs for single mothers
6. Community Seconds
Community Seconds is a program offered by Fannie Mae that allows lenders to accept loans from non-traditional sources such as community organizations, non-profits, and employers as down payment assistance. So, if you can find any housing grants from local non-profits or state agencies, Fannie Mae allows you to bundle them into a second mortgage that can be put toward the down payment or other closing costs. Although Fannie Mae does not provide the funding, they set the guidelines and guarantee the loan, so other lenders can issue the mortgage. Freddie Mac also has a similar program called Affordable Seconds.
Requirements
- Primary Residence: The property being purchased must be the borrower’s primary residence. Community Seconds® can be used for single-family homes, including condos and co-ops.
- Income Limits: The program often targets low to moderate-income borrowers. Income limits are usually set at 80% of the area median income (AMI), but some variations may apply based on local programs and specific housing markets.
- Combination with First Mortgages: Community Seconds® must be combined with a first mortgage loan from an approved lender. The first mortgage can be a conventional loan, an FHA loan, or other qualifying mortgage products. Creditworthiness: Borrowers must have a minimum credit score of 620.
7. The Chenoa Fund
The Chenoa Fund is a government-chartered organization that provides down payment assistance on FHA loans with two different options: a 10-year repayable loan or a 30-year forgivable loan.
- 10-Year Repayable Loan: The repayable loan requires a monthly payment with an interest rate of 2% higher than your mortgage rate.
- 30-Year Forgivable Loan: The forgivable loan has a 0% interest rate and does not require a monthly payment, although you must stay current on your mortgage payments.
Options for Forgivable Loan
3.5% Down Payment Loan: The 3.5% down payment loan is forgiven after 36 consecutive payments.
5% Down Payment Loan: The 5% down payment loan is forgivable after 120 consecutive payments.
Requirements
To qualify for the Chenoa Fund, a down payment assistance program, single moms and other borrowers must meet the following requirements:
- Credit Score: For FHA loans, a minimum credit score of 600. For Fannie Mae conventional loans, a minimum credit score of 620.
- Debt-to-Income Ratio: Programs may have stricter debt-to-income (DTI) ratio requirements compared to traditional mortgage loans.
- Income Limits: Income limits vary by program and geographical area. Borrowers must check specific program guidelines to ensure they meet the income eligibility requirements.
- Property Requirements: The property must be a single-family residence, and the borrower must occupy the home as their primary residence.
- Loan Terms: The Chenoa Fund offers two main types of assistance: a repayable second mortgage with an interest rate of 2% higher than the first mortgage and a forgivable loan with 0% interest. The forgivable loan has two options: a 3.5% down payment loan forgiven after 36 consecutive on-time payments and a 5% down payment loan forgiven after 120 consecutive on-time payments.
8. Community Development Block Grants
Community Development Block Grants are another great resource for single mothers. Every year, HUD provides funding to improve the quality of housing in low-income neighborhoods at the county and city levels. Many communities use this funding to provide housing grants and other programs that are good for single mothers. The exact terms and qualifications will vary depending on where you live, but HUD has a list of all the agencies offering rental and homebuying assistance by state on its website.
9. Habitat for Humanity
Habitat for Humanity is a non-profit organization that strives to help low-income communities worldwide improve their housing conditions. They have a program that can be very beneficial to single mothers in the form of an interest-free loan.
Requirements
- Valid Reason: Applicants must demonstrate a clear need for safe, affordable housing.
- Trustworthiness: They must demonstrate their ability to repay the loan.
- Community: They must also actively participate in the Habitat for Humanity program by helping to build a home for themselves or others first. While it may not be feasible for everyone, single mothers looking to save a significant amount of money over the life of their home loan who have the time to commit should consider the program.
10. Operation Hope
Operation Hope is a non-profit that provides resources to single mothers and other low-income applicants on financial literacy and economic education. They have a program designed to counsel participants on becoming homeowners, which includes a homebuyer workshop with direct assistance from a HUD-certified counselor. Although the organization does not offer any grants or loan programs directly, it is a great way for single parents to receive information on homeownership and look into any possible programs with the guidance of a trained professional.
Requirements
- Participation: Participants must enroll as HOPE clients to access the various services and support.
- Collaboration: They must work with a Financial Wellbeing Coach to develop and follow a personalized financial plan.
11. Shelter Care Plus Program
The Shelter Care Plus Program is a grant-funded rental assistance program that benefits single mothers and other low-income residents on the verge of homelessness. Applicants must meet HUD’s guidelines for homelessness and income restrictions. The program offers rental assistance with long-term housing options to help struggling single mothers and disabled populations get back on their feet. After getting you into a permanent place to live, the program also offers a range of other services to support participants that are funded by various governmental agencies.
Requirements
- Homelessness Criteria: Applicants must meet HUD’s guidelines for homelessness. This includes those living in shelters, on the streets, or in other places not meant for human habitation.
- Income Restrictions: Participants must fall within the income limits set by HUD, which typically require households to earn below a certain percentage of the Area Median Income (AMI). These limits are adjusted annually and vary by location.
- Target Populations: The program is designed to assist specific populations, including single mothers, disabled individuals, and other vulnerable groups who are experiencing homelessness or are at risk of becoming homeless.
12. Local Housing Authority Grants
The best place for single mothers looking for grants and home-buying assistance is to visit the local housing authority. There are many programs available at the state and local levels that are either tailored specifically to single mothers or will benefit them immensely. The local housing authority can help you find the best option for your situation and connect you with the right departments and non-profit organizations to get you the assistance you need. Typically, there are numerous local housing grants for single mothers available, making it much easier to afford a home.
Requirements
- Residency: Applicants often need to be residents of the local authority area where the grant is being offered. This ensures that the funding is allocated to those within the community.
- Financial Need: Grants are usually targeted toward individuals or families with low incomes or who are experiencing financial hardship. Proof of income and financial situation may be required.
- Specific Criteria: Some grants may be targeted towards particular groups, such as elderly residents, single parents, individuals with disabilities, or those affected by specific housing issues like homelessness or poor living conditions.
Housing Grants for Single Mothers Bottom Line
Single motherhood can make it more challenging to afford housing costs, especially in more expensive areas. However, that doesn’t mean you should lose hope, as there are many reputable programs available that can make it easier to afford a home or pay your rent through housing grants and financial counseling. You’ll need to do some research to find the right program, but if you’re willing to put in the work and fill out the applications, you will be surprised by how many resources are available.