Whether you’re decorating on a budget, trying to be a little more conscious of your consumption, or simply love the thrill of hunting for those amazing, one-of-a-kind finds, thrift-store shopping can be a fun and smart way to create a signature aesthetic for your home. In addition to saving money by thrifting, you can also feel good about keeping items from ending up in a landfill by giving them a second life as part of your decor. But how do you get the best deals, what kinds of pieces should you hunt for and how can you style them without your own home looking like a thrift store? We did some digging to find out.
Looking for striking home decor? This is where pros shop in Dallas-Fort Worth
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The difference between thrift stores and consignment shops
Consignment and antique shops are great, but they tend to be pricier because their collections are curated. These stores do all the hunting down and fixing up for you, and that service is offset via higher price tags. While consignment shops are more likely to have highly sought after antiques from pedigreed brands, you can still certainly find hidden gems at nearly any thrift store — you just may have to put in more effort to find what you’re looking for. Balance the odds of what you want being there with the price range you’re willing to pay when deciding where to shop.
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Getting what you need while giving back to the community
Many of your favorite causes run thrift shops to help fund their programs and services. Prime Thrift near Fair Park benefits American Veterans (AMVETS), Disabled American Veterans (DAV) and other local and national charitable organizations, while Out of the Closet in Oak Lawn benefits the AIDS Healthcare Foundation. Genesis Women’s Shelter, a nonprofit that provides safety, shelter and support for women and children who have experienced domestic violence, operates two thrift stores: one in Oak Lawn and another in South Oak Cliff. There are four Soul’s Harbor locations throughout the metroplex, with proceeds going toward its programs to help men break the cycle of homelessness and addiction. Some of these shops even have exclusive relationships with estate liquidators, increasing your chances of finding treasures among their wares.
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If you’re looking for a bit more than just decor, check out your local ReStore, which benefits Habitat for Humanity. There, you can find actual building materials, such as tile, cabinets, wood flooring, windows, doors or even vintage brick. In addition to these, they also have plenty of new and vintage home furnishings, large appliances and more. With 10 locations across D-FW, it’s a convenient alternative to big-box stores when shopping for your next home design project.
Choose your shopping days wisely
For donation-based thrift stores, Mondays and Tuesdays are typically the best days to shop, because most people tend to drop off items early in the week after spending the weekend cleaning. Signing up for emails is a great way to stay on top of the latest finds and deals, but there’s just no substitute for going in regularly. It works the same with searching online, whether it’s eBay, Craigslist, or Facebook Marketplace. “I’m a huge fan of Facebook Marketplace” says Whitney Marsh, an interior designer and business owner who furnished her Oak Cliff coffee shop, B-Side, with thrifted finds. “I also really love Souls Harbor in Waxahachie,” Marsh notes.
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Have a strategy before you start shopping
There are two ways to go about hunting vintage pieces. Either have a piece or project in mind and know what you want to pay for it, or be able to spot a good deal. This can involve researching brands, pieces, and eras to be able to find your ideal mix of quality pieces that aren’t in demand. Marsh says that’s her strategy. “I know what I like, and I also know what brands are known for quality goods,” she explains. “I definitely have a style. I’m drawn toward leather furniture, solid wood, wool rugs and unique art.”
For example, you may love midcentury modern (MCM) pieces, but the popularity of decor from that era means there’s more demand, and unscrupulous sellers may assign that label to random items in order to get them to sell. You may find more success by researching some favorite brands or designers from the MCM era and looking for those specifically to avoid fake listings and inflated prices. Be aware that people will list items online with a famous brand name keyword to get more hits, such as saying a “Pottery Barn-style” rug or “MCM-style lamp.” If you’re shopping in person, don’t be afraid to ask the store’s staff about an item you’re looking for; they may have something similar that just hasn’t been put out yet. Or, they might be willing to take down your name and keep an eye out for items on your list — especially if you’re a regular customer.
Simple design rules to consider
Once you’ve found that unique piece you’ve been searching for, how do you style it? Thrifted pieces bring character into a space, but it is possible to have too much of a good thing, says Marsh. “I like to pair thrifted pieces with more high-end textiles. I love an old leather sofa that’s worn in against a very bold luxury wallpaper.” If you buy a well-worn piece and want to play up that lived-in aesthetic, try to surround it with items that are clean and modern. Too much rusticity can end up looking like neglect. Same goes for smaller items, such as pots, frames or books — space them out in designed vignettes throughout your home instead of clustering them all together. Also, keep in mind that pairing thrifted furniture is easier when they share some similar elements. For example, mismatched nightstands look more cohesive if they are roughly the same size and color.
Thrifting can be a way to save big, depending on when and where you shop, and what you’re looking for. “I definitely shop with a specific corner or space in mind. I also really only pull the trigger on things that seem like they’re good quality and the right price,” says Marsh. But if you’re patient, persistent and know what you want and what you’re willing to pay for it, it’s just a matter of time before you find it.
Your mind and body may be ready for a sunny beachside spring break in Cancun, but if you’re living that broke college kid life, you may imagine your spring break looking more like a week at home, scrolling through Instagram and binging Netflix.
However, it is possible to plan a spring break trip on a limited budget. And yes, even a college student’s budget can be stretched for spring break fun! If you’re wondering how to plan a spring break trip without living off instant noodles for the next month, we have some tips to help you get a well-deserved vacation from those long nights spent studying in your dorm room.
Keep reading for some of our best tips on making your spring break trip dreams happen on a budget.
1. Start Planning Early
Waiting until the last minute to plan a trip could mean missing out on cheaper flights, hotels, and even popular ticketed attractions. If you’re going to a hot destination during a peak travel season, which includes spring break for many destinations, then you could blow your travel budget on the flight alone, leaving you without enough money for food and lodging.
2. Make a Budget & Stick to It
Before you even leave for your destination, it’s smart to create a travel budget. What can you reasonably afford to spend on accommodations, transportation, entertainment, meals, and shopping? Having a budget could help you avoid splurging on expensive dinners or overspending at local shops.
Recommended: How to Save for a Vacation: Creating a Travel Fund
3. Find Off-Season Destinations
If Cancun for spring break is too pricey for your college student budget, don’t stress. There are a number of great destinations that are off-season in the spring, ranging from the more rugged Jackson County, North Carolina to the Big Apple.
4. Only Travel as Far as You Can Drive
It’s about the journey, not the destination, right? You can make that (semi) true by taking a road trip with a few friends. On a road trip, you don’t need to follow any set schedule. Since there’s no flight or train to catch, and often no hurry to reach a destination, you can make spontaneous decisions and discover hidden gems along the way.
5. Avoid Tourist Traps
Doing spring break on a budget generally means skipping touristy destinations like Miami, New Orleans, and Cabo. However, there are plenty of cheaper alternatives to these locations that can save you money and that will probably be far less crowded, too.
6. Reach out to Friends & Family
If you have friends or family in another city, reach out and ask if they’d be willing to host you. If they agree, you could get some free lodging and meals out of it. Plus, you’d be connecting with locals who could guide you through the city and give some tips on cool and free stuff to do that you might not have found otherwise.
Recommended: How to Balance the Urge to Travel and the Need to Save
7. Ditch the Plane Ticket
Planes and cars aren’t the only way to land at your tourist destination. You can do spring break on a budget by hopping on an Amtrak train or a Greyhound bus, both of which have destinations all over the country. The best part? You can catch up on some work, sleep, or relaxation while you enjoy the ride.
8. Don’t Forget about Cruises
You could spend a fortune going to just Miami or Los Angeles. Or, you could check out some cheaper cruise options that could potentially take you all over Alaska, the Caribbean islands, or a slew of other destinations for less. There are even cruise options designed specifically for college students.
9. Consider Pitching a Tent
Do you get motion sickness in cars or boats? With camping, your feet will be firmly planted on the ground, and your budget will also likely stay down to earth. You can camp out in many destinations across the U.S. and even abroad, be it under the stars near a national park or near a great fishing hole in the Carolinas.
10. Look For a Deal
Sites like Groupon and LivingSocial offer a number of travel and hotel deals both for individuals and for group travel. Checking out which hotels are offering promotions could help you save when booking accommodations. You can also find deals on attractions near where you’re vacationing, too.
11. Sign Up for a Spring Break Volunteer Experience
Many colleges offer a program called “alternative break,” which allows students to travel and volunteer during their spring break. If your college doesn’t offer any alternative break trips, you can still find some opportunities through organizations like Habitat for Humanity and United Way .
12. Be a Tourist in Your Own State
If airfare is out of the question for your spring break budget, a budget-friendly alternative could be touring your own state. You can take a spring break road trip around your state or even take multiple day trips, the latter of which could allow you to have most of your meals at home with no hotel needed.
13. Fly on Unpopular Days
No, it’s not just your imagination: There are some days that are cheaper to fly on than others. If you’re not tied to a set departure and/or return date, use the flexible date search on a travel or airline site. This can help you find the cheapest travel dates for your trip.
14. Sign Up for Price Alerts
One helpful way to ensure you’re getting the best possible deal on your trip is to sign up for price alerts, a free service offered by several travel companies, such as Kayak, Skyscanner, and Google Flights. These sites track prices daily and alert you in real-time when the price changes for a flight, hotel, or rental car you want.
15. Ask for Extra Snacks
If you’re flying to your destination, be sure to grab the airplane snacks. And if you like the snacks, ask for seconds! You may be able to snag a free snack to help tide you over between meals when you land. The worst thing that can happen is that they say no.
16. Consider Airbnbs or Hostels
For those looking for the best tips on how to plan a spring break trip, one not-so-obvious one may be skipping hotels altogether. Staying at an Airbnb or hostel could be a cheaper travel hack than even a budget motel, especially if you don’t plan on spending much time in your room anyway.
17. Use Public Transportation
While Uber may be one of the handiest apps to have while traveling, relying on ridesharing and taxis could end up costing you a small fortune, especially if you’re traveling in a big city. Using public transportation could cost you a fraction of the price of an Uber, plus it will allow you to explore more of your destination as you navigate around subway and bus stations.
18. Bring Your Own Food
Grocery costs may be on the rise, but the cost of dining out can really wreak havoc on your spring break budget. If you want to try the local cuisine, you can typically do so much cheaper by going to a local grocery store and buying premade meals there or, better yet, making your own meals using fresh, local ingredients. This option may only be available if you’re staying at an Airbnb or hotel with a kitchenette, though.
19. Eat Out for Lunch, not Dinner
Eating out for dinner will often cost you far more than eating out for breakfast or lunch. And if you decide to eat out for dinner still, skip the drinks and desserts. These items typically have higher markups than other items on the menu. Plus, when it comes to desserts, the quality (and quantity!) may not be worth it — many restaurants don’t even make the desserts they serve.
20. Ask About Complimentary Hotel Meals
Students looking for spring break trips on a budget won’t want to miss out on this tried-and-true travel budget saver: Before booking your hotel, ask if they have any complimentary meals, such as a continental breakfast. It may not be as fancy or Instagram-worthy as the hottest brunch spot in town, but it will likely be a lot better for your budget.
21. Use The Free Hotel Coffee
Most hotels offer free coffee either in the lobby in the mornings or through small coffee makers in your room. It may not be as fancy as your usual Venti Coconutmilk Latte with two pumps of salted caramel, but it won’t cost you anything.
22. Look out for Free Samples
Looking to score some more free snacks? Add local farmers’ markets to your itinerary. Many markets are full of free samples, so you may even be able to scrounge together a free lunch. You may also be able to score free swag, like t-shirts and reusable bags, from local vendors and businesses, your hotel, or the local visitor’s center.
23. Prioritize Free Activities
Sure, you can spend $50 for a museum ticket. Or, you could search online for some free museums nearby. Many hot spring break destinations offer free walking tours, free museum days, and a plethora of other free activities, such as parks and beaches.
24. Find a Travel Buddy (or Four!)
You’ll find that going on a budget-friendly spring break trip can be a lot easier if you team up with friends. Pooling your college budgets together may even help you to afford nicer accommodations or a more far-flung destination.
25. Cash in Credit Card Rewards…
If you have a rewards or cashback credit card, you may want to save up your points to help fund your epic spring break. Having a travel rewards card can be an easy way to save on travel, especially if you’re able to use that card on purchases before heading out on vacation, which could help you build up even more rewards points.
26. …And Earn More Rewards While Traveling!
Using your rewards credit card on vacation may not help you save for your current trip. But if you rack up more rewards during your trip, you’ll already have a new vacation fund started before you even come back from spring break.
27. Research Student Discounts
Catching a movie or eating out during spring break? Ask about a student discount! You may be able to score some sweet savings even before your vacation, as companies like Expedia often offer student-only travel deals. You can also try StudentUniverse , which helps students get discounts on hotels, airfare, and more.
28. Ask About Membership Discounts
A ton of college discounts exist, but don’t rule out membership discounts you could get from family members. For instance, Costco, Sam’s Club, AAA, and AARP all offer travel discounts to their members. It may be worth asking some relatives about their memberships to save big on your spring break trip.
29. Avoid Transaction Fees
Transaction fees can be a real budget-killer if you’re traveling abroad. And even if you’re stateside, ATM fees can also put a dent in your spring break savings. So you may want to ask your card issuer about fees and plan accordingly to make sure you have enough cash on hand to avoid them.
30. Use Hotel Toiletries
TSA-approved toiletries can be overpriced, and buying them when you arrive at your destination may also mean overpaying for toiletries that you have loads of at home. The best alternative? Decant your own shampoo and conditioner into smaller bottles you can snag at The Dollar Store. Or, better yet, just use the hotel toiletries. They may not be what you’re used to, but your budget will thank you.
The Takeaway
Wondering how to plan a spring break trip on a budget? It may not be as hard as you think. If you’re willing to try off-peak destinations and hunt for discounts, you can save a ton of cash. Spring break trips on a budget don’t have to be a drag, either. You can still go to popular destinations if you create (and stick to) a spring break travel budget. Using rewards and cashback cards can also help you save on airfare and other travel expenses.
SoFi Travel has teamed up with Expedia to bring even more to your one-stop finance app, helping you book reservations — for flights, hotels, car rentals, and more — all in one place. SoFi Members also have exclusive access to premium savings, with 10% or more off on select hotels. Plus, earn unlimited 3%** cash back rewards when you book with your SoFi Unlimited 2% Credit Card through SoFi Travel.
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Home renovation is rarely straightforward and always carries the risk of additional costs—and that’s particularly true for those who need accessible home modifications. Whether you need to build an entry ramp or adapt a bathroom, it helps to be aware of funding options that can help homeowners.
About 27% of the U.S. adult population has a disability, according to the Centers for Disease Control and Prevention. And 12% of people with disabilities face a mobility issue that may impact walking, climbing stairs, or getting around the house. The good news: There’s help for millions of people to pay for renovations that make their homes more accessible, whether they have physical disabilities that impact mobility, are deaf or hard of hearing, are blind or have diminished vision, are neurodivergent, or have other disabilities that may require a home modification.
Funding resources can come from federal, state, and local government grants. Other options include private loans and nonprofit funding. This guide can make it easy to find the right funding source to help offset (and potentially cover) the cost of home modifications for accessibility.
Home modification costs at a glance
Starting a home repair project can seem daunting. “Home modifications for accessibility can range from simple changes like installing grab bars in bathrooms to more extensive renovations like widening doorways or installing ramps,” says Ladina Schöpf, founder of a Zurich-based architecture planning firm. “The costs can vary, depending on the scope of the modifications and the specific needs of the individual,” Schöpf says.
From minor modifications (some of which you may be able to handle yourself) to major structural changes, the cost of home remodeling for individuals with motor disabilities can range from less than $100 to more than $60,000.
Here are a few examples of common home modifications for people with disabilities and the average price, according to a disability remodeling cost guide from Fixr, an online resource center focused on home improvement and repair projects.
Install a chairlift: $3,000–$5,000
Build a wheelchair ramp: $1,700–$5,000
Widen a doorway: $300–$2,500
Add grab bars: $85–$300
Install a specialized doorbell (for people with hearing impairments): $50–$500
Add auditory smoke detectors (for people with vision impairments): $70–$150
One of the top sources for grants for home modifications for people with disabilities is the U.S. government, which has several programs to help homeowners cover the cost of their accessible home modifications.
U.S. Department of Agriculture
The U.S. Department of Agriculture (USDA) provides loans and grants for low-income rural residents through its Rural Development program. The maximum loan amount is $40,000, and the maximum grant allowance is $10,000. Loans and grants from this USDA program may be combined for up to $50,000 in assistance for home repairs.
To qualify for the program, applicants must own their home and live in the house. Additionally, homeowners must prove they can’t obtain affordable credit elsewhere if they apply for the Rural Development program, also known as the Section 504 Home Repair program.
Further, this program only applies to single-family homes in select areas. Applicants should first check if their home is in an eligible area on the USDA website. For grants, applicants must be age 62 or older.
U.S. Department of Veteran Affairs
There are also grants available from the U.S. Department of Veteran Affairs. As you might’ve guessed, applications for these grants are limited to veterans and service members with certain service-connected disabilities. Beyond those qualifiers, the grants vary depending on whether the applicant owns (or plans to own) the home being modified. Veterans who don’t own their home but need help modifying it for their disability can still apply for specific grants.
Specially Adapted Housing (SAH) grant. It’s the most significant grant available, as successful applicants can receive up to $117,014 in 2024. This type of grant requires that applicants own or plan to own the home being modified.
Special Home Adaptation (SHA) grant. This grant is designed for veterans with qualifying service-connected disabilities who live in their own home or one owned by a family member. The grant provides up to $23,444 (as of 2024) and doesn’t need to be used within a single calendar year. This flexibility is nice in case future modifications are required.
Temporary Residence Adaptation (TRA) grant. This type of grant caters to veterans and service members in temporary housing arrangements. Veterans need to qualify for either the SAH or SHA grant to apply for the TRA, which differs in that it doesn’t require the grant applicant to own the home and instead covers changes needed when the veteran is temporarily living with a family member. The amount of this grant depends on whether the applicant would qualify for an SAH or an SHA grant: if SAH, then the grant provides up to $47,130 in 2024; if SHA, then the grant provides up to $8,415.
Home Improvements/Structural Alterations grant. This grant provides up to $6,800 to pay for modifications for service-related disabilities and up to $2,000 for other disabilities.
State and local home modification grants
The federal government isn’t the sole funding source for costs associated with home modifications for individuals with disabilities. There are also state and local programs that provide financial assistance when modifying a home for accessibility.
U.S. Department of Housing and Urban Development
The U.S. Department of Housing and Urban Development (HUD) website has a state-by-state breakdown of homeowner assistance programs. Loan amounts and qualifying criteria will vary by state, so it’s best to research your home state to determine how much money is available for homeowners making repairs or modifications for accessibility.
The Independent Living Research Utilization program was started in the late 1970s and, in the decades since, has provided a comprehensive list of resources for people with disabilities who strive to live independently. Like the HUD resource list, this is organized by state and includes local funding options.
The National Directory of Home Modification and Repair Resources has an interactive map with many resources that homeowners can explore while researching funding options.
Nonprofit resources for home modifications
Homeowners can apply for funding from nonprofits as they modify their homes and make them more accessible.
Habitat for Humanity
This nonprofit is well known for building homes for low-income families. The Habitat approach relies on both volunteer workers and the homeowners themselves taking an active role in building for their future through a process known as “sweat equity.” Even though a prospective homeowner’s disability may limit their ability to participate in construction work, Habitat for Humanity has ways for all future homeowners to take an active role through means like homeowner education courses or volunteering at Habitat’s storefronts.
The National Disability Institute
The National Disability Institute is another nonprofit group, and its Assistive Technology Loan Program provides loans up to $45,000 to help pay for hearing and vision aids, communication devices, environmental adaptations, wheelchairs, and home or vehicle modifications for New York and New Jersey residents.
Other financing options for home modifications
Many homebuyers may face headwinds from high interest rates and limited supply, and the added cost of home remodeling for disability modifications compounds the pressures that disabled homebuyers face.
Brady Bridges is a real estate broker/owner in the Fort Worth, Texas area, and he encourages homebuyers to think outside the box if they need additional funding options for home modifications. “In the current housing market climate, the Fannie Mae HomeReady loan program is a viable financing option for home modification for individuals with disabilities,” Bridges says. “Disabled homebuyers who earn less than area median income and with a credit score of 620 or higher can benefit from a low down-payment requirement, as low as 3%,” Bridges says, “with the option to use grants or assistance funds for the entire down payment.”
Every extra bit of financial wiggle room helps in purchasing a new home, and it’s especially useful when budgeting for accessible home remodeling projects that may be required after the home purchase.
Putting it all together
Once you research the price ranges of common accessibility modifications and clarify how much your projects will cost, you can effectively and realistically start to budget for these updates. But you’re not necessarily on your own when it comes to paying for these modifications. There are many funding options for accessible home modifications out there that can lessen the financial burden of making a home comfortable for a differently abled person.
Make a plan to start your project on the right foot and proceed confidently. To kick-start your savings, consider a Discover® savings account, which offers a competitive savings rate with no account fees.
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There’s no doubt that being a single mom is challenging. There’s also no doubt that qualifying for a mortgage can be difficult even under normal circumstances.
The National Association of Realtors found that single female buyers account for 9% of all home purchases. This figure is down from 20% in 2010. And the median purchase price for single female buyers was $189,000, which is the lowest of all median home purchases.
For many single mothers, trying to qualify for a mortgage with only one income can feel next to impossible. But as a parent, it’s normal to want to provide a comfortable home for your children.
And thankfully, there are loans and financial assistance programs available that can help you do just that. Let’s look at some of the best mortgage programs available for single moms.
Challenges Single Moms Face in Buying a Home
One of the most difficult challenges that many single mothers face is a lack of income. They are responsible for providing for themselves and their children on one income, and they don’t always receive child support.
It can be challenging because mortgage companies want to see that you have a certain amount of disposable income before they’re willing to lend to you. You need to prove that you can make your monthly mortgage payments, have a low debt-to-income ratio, and a strong credit history.
Plus, most lenders require down payments between 10% and 20%. Most people struggle to come up with this kind of cash, so it can be especially challenging for a single mother.
5 Home Loans for Single Moms
If you’re a single mom looking to purchase a home, there are options available to you. Listed below are the five best mortgage assistance programs for single moms.
1. Down Payment Assistance Programs
Homeownership is a dream for many, but the initial costs can sometimes stand as a formidable barrier. For aspiring homeowners facing this challenge, down payment assistance programs act as a financial bridge, easing the burden of upfront expenses. Offered across various states and localities, these programs are crafted to cater to differing financial situations.
Lifting financial barriers: The highlight of these programs is their primary purpose – reducing the initial costs of buying a home. By either lowering or completely covering the down payment, they create a more accessible route to homeownership for many who might find it out of reach otherwise.
Local solutions for local challenges: Many states and cities have their unique down payment assistance programs designed with their residents in mind. From specific grants to interest-free loans, the types and benefits of these programs can vary widely based on the region.
Multiple options: Some programs might offer flat monetary assistance, like a set grant amount, while others could provide a percentage of the home’s price. Additionally, there might be options that assist not just with the down payment but also with closing costs.
Criteria and eligibility: Like any financial program, these assistance initiatives come with their sets of requirements. Factors like income levels, property location, and first-time homebuyer status can influence eligibility.
Your next steps: If the prospect of reduced initial costs sounds appealing, dive into research specific to your state or city. Local housing agencies and official state websites often provide comprehensive lists of available down payment assistance programs. By understanding what’s accessible in your region, you can make a more informed decision on your path to homeownership.
2. FHA Loans
FHA loans are a popular option for single parents struggling to come up with a down payment. You can apply for this type of home loan through a bank or online mortgage lender, and the Federal Housing Administration (FHA) and the U.S. Department of Housing and Urban Development (HUD) guarantee the home loan.
Flexible credit requirements: One of the most significant advantages of an FHA loan is its lenient credit criteria. Even if your credit score isn’t perfect, you may still be eligible for this loan, offering a lifeline to many potential homeowners who’ve faced financial hiccups in the past.
Lower down payments: Traditional loans often demand a hefty down payment, but with an FHA loan, you can potentially secure your dream home with as little as 3.5% down. This makes the path to homeownership more feasible for individuals without vast savings.
Debt-to-income leeway: Where many conventional loans are strict about debt-to-income ratios, FHA loans often provide a bit more wiggle room, accommodating borrowers with higher debt levels.
Government assurance: With the Federal Housing Administration backing these loans, lenders often feel a heightened sense of security. As a result, borrowers can often enjoy more favorable loan terms and conditions.
Understanding the criteria: While FHA loans offer flexibility, there are still criteria to meet. This includes ensuring the property meets specific standards and falls within set loan limits. Additionally, borrowers will need to pay a mortgage insurance premium (MIP), which can add to the monthly payment. It is usually more expensive than a conventional loan, and it remains in place until you refinance or sell the property.
Getting started with an FHA loan: If the benefits of an FHA loan resonate with your situation, the next logical step is to consult with an FHA-approved lender. They’ll guide you through the process, ensuring you’re informed, prepared, and ready to make the best decision for your homeownership dreams.
3. USDA Loans
When thinking of affordable homeownership, rural areas might not be the first thing that comes to mind. Yet, the U.S. Department of Agriculture (USDA) has paved a unique path to homeownership, especially in these lesser-populated regions. USDA loans stand as a testament to the government’s commitment to making homeownership accessible to a broader audience, regardless of urban or rural preferences.
Zero down payment: The standout feature of USDA loans is the possibility to finance the entire purchase price of a home. Imagine walking into your new home without the stress of a hefty upfront payment. That’s the magic of the USDA.
Flexible location choices: While the term “rural” defines the USDA’s primary target, many suburban areas also fall within their eligibility map. It’s not just about countryside homes; it’s about expanding homeownership in less densely populated areas.
Competitive interest rates: Often, USDA loans come with interest rates that are either at par or even better than conventional loans. This can translate into significant savings over the life of the mortgage.
Government guarantee: With the backing of the U.S. Department of Agriculture, lenders often extend more favorable terms to borrowers. This backing ensures lower risks for lenders and better loan conditions for aspiring homeowners.
Understanding eligibility: To be a part of the USDA’s vision, you’ll need to meet specific criteria. This includes income restrictions based on the median in your area and ensuring the property falls within the USDA’s designated zones.
Starting the USDA adventure: If the prospect of a no-down-payment home in a tranquil setting appeals to you, look into the USDA loan process. Engaging with a lender familiar with USDA loans will offer clarity and set you on a promising path toward a home that aligns with your dreams.
4. VA Loans
For those who have bravely served in our nation’s military, VA loans are the government’s way of saying thanks. Whether you’re a veteran, an active-duty service member, or the widow of someone who served, these loans offer distinct benefits tailored to recognize and support your sacrifices.
No down payment: What sets VA loans apart is the option to finance 100% of a home’s purchase price. That means you can step into homeownership without the heavy upfront cost that often deters potential buyers.
Low-interest rates: Traditionally, VA loans come with interest rates that are more competitive than many conventional loans. Over the lifespan of your mortgage, this could equate to substantial savings.
Skip the PMI: With many mortgages, if you can’t put down a certain percentage, you’re hit with the additional monthly cost of private mortgage insurance (PMI). However, with VA loans, you won’t have to factor in PMI, no matter your down payment amount.
Government assurance: With 100% backing from the government, lenders often offer more favorable terms. It’s a win-win; you get better conditions, and they get added security.
Meeting the criteria: To take advantage of a VA loan, you’ll need to meet specific service stipulations. The criteria vary based on your military service’s nature and duration. Additionally, the property you choose must meet VA standards, which entails an inspection and appraisal by a licensed professional.
If a VA loan sounds like a good fit, your next step is to consult with a VA-approved lender. They’ll walk you through the ins and outs, ensuring that you’re both eligible and fully informed.
5. HomeReady Mortgage by Fannie Mae
If you’re a single mom or a first-time homebuyer searching for a more flexible mortgage option, the HomeReady Mortgage by Fannie Mae might be just what you’re looking for. This program is designed to assist individuals, like you, in accessing affordable home financing.
Low down payment: With HomeReady, the daunting hurdle of a large down payment becomes more manageable. This program allows for down payments as low as 3%, enabling homeownership for those who might be limited by savings.
Inclusive co-borrowing: Understanding that households today come in all forms, HomeReady offers a unique feature. It permits co-borrowers who won’t be residing in the house, like a supportive relative or close friend. This flexibility can significantly enhance borrowing capacity.
Reduced PMI: While many mortgages saddle borrowers with hefty private mortgage insurance (PMI) premiums, the HomeReady program shines with its reduced rates. Over time, this can result in tangible savings.
Government-backed confidence: Fannie Mae’s backing offers lenders the assurance they need, which often translates to more favorable loan terms and conditions for borrowers.
Meeting the guidelines: Like all specialized loan programs, HomeReady comes with its specific criteria. It’s essential to understand these requirements and ensure that both the borrower and the property align with them.
Stepping into HomeReady: If the features of the HomeReady Mortgage align with your situation, the next step is to liaise with a lender experienced with Fannie Mae’s offerings. Their guidance can illuminate the home buying process, ensuring that you make an informed choice, well-suited to your housing aspirations.
Preparing for Homeownership: Key Steps for Single Moms
Taking the first step towards homeownership as a single mom can feel daunting, but with the right preparation, it becomes a more manageable process. To ensure you’re making the right choices for you and your family, consider these foundational steps:
Determine your budget: Before diving into the property market, it’s crucial to have a clear understanding of your financial standing. Assess your monthly income, expenses, and potential home-related costs. This will give you a clear picture of the mortgage payment you can afford without straining your finances. Remember, it’s not just the monthly mortgage you have to account for; consider property taxes, utilities, and potential maintenance costs too.
Search for low down payment options: Not all home loans for single moms require a hefty down payment. It’s beneficial to look for home buying programs that offer low down payment options. This can help in making homeownership more attainable without depleting your savings.
Establish a savings plan: Even if you opt for a low down payment loan, you’ll still likely need to pay some upfront costs. Establishing a dedicated savings goal can help. Consider opening a high-interest savings account where your money can grow over time, helping you reach your down payment goal faster.
Stay informed: Securing home loans for single moms can be a challenging process. Stay informed by researching and comparing different home loan options. Consider reaching out to financial advisors or housing counselors who can guide you through the home buying process.
In addition to these steps, it’s also beneficial to look into loan programs tailored for low-income borrowers. Such programs can offer favorable loan terms, grants, or even down payment assistance, making homeownership even more achievable.
See also: Best Home Loans for Low-Income Borrowers
Home Loans for Single Mothers FAQs
Can I buy a home as a single mom?
Yes, you can purchase a home as a single mom. However, it can be more difficult to qualify for traditional home loans when you are a single parent.
You may need to look into government-backed loans such as FHA loans or USDA loans, which may have more flexible qualification requirements. Alternatively, you could look into owner-financing or rent-to-own options.
What types of home loans are available for single moms?
Single moms may be eligible for several types of home loans, including FHA loans, USDA loans, VA loans, and conventional loans.
How much money can single mothers borrow when applying for a home loan?
The amount of money that single mothers can borrow when applying for a home loan depends on several factors. These include income, credit score, debt-to-income ratio, and down payment.
Lenders will look at your income to determine how much they are willing to lend, and your credit score will determine the interest rate you receive. It is also important to have a sufficient down payment, typically at least 3-5% of the home’s value.
Additionally, lenders will want to see that your debt-to-income ratio is less than 43%, meaning that your monthly debt payments are less than 43% of your monthly income. With good credit and a sufficient down payment, single mothers may be able to borrow up to 97% of the home’s value.
What is the minimum credit score required to get a home loan for single mothers?
The minimum credit score required to get a home loan for single mothers can vary depending on the type of loan and the mortgage lender.
Generally speaking, FHA loans tend to have the lowest credit score requirements, with a minimum score of 500. This can be helpful for single mothers who may not have the best credit.
Other types of loans, such as a conventional loan, may have a minimum credit score requirement of 620 or higher. It is important to check with the lender to find out the exact credit score requirements for the type of loan you are applying for.
Are there any special programs available for single mothers looking to purchase a home?
Yes, there are several programs available across the U.S. designed to assist single mothers and low-income families in their quest for homeownership. These programs can make the home-buying process more affordable through a combination of grants, low-interest loans, down payment assistance, and more. Aside from the ones we mentioned above, here are some other notable ones:
State-specific programs: Various states offer specific programs to assist single parents or low-income individuals. For instance, states might have special housing grants for single mothers, or they may offer seminars and classes on home buying that come with financial incentives upon completion.
Habitat for Humanity: This non-profit organization helps families build and rehabilitate their homes. Single mothers can offer volunteer hours to the organization as a form of ‘down payment,’ assisting in constructing their own homes or others.
Individual Development Account (IDA): IDAs are matched savings accounts, where for every dollar saved, it gets matched by federal and non-federal funds. This can be a boon for single mothers looking to accumulate a down payment.
Section 8 Homeownership Voucher: While Section 8 is often associated with rental assistance, there’s a homeownership option that allows eligible participants to use voucher payments to make mortgage payments.
Are there any special tax benefits for single mothers who purchase a home?
Yes, there are several tax benefits available to single mothers who purchase a home, such as the mortgage interest deduction and the homeowner’s tax credit.
How can a single parent save for a house?
Set a budget and stick to it: Make sure to create a budget and stick to it. Track your income and expenses and cut out unnecessary costs.
Set realistic goals: Set realistic goals for what you can afford and how much you will need to save each month.
Automate your savings: Set up an automatic transfer from your checking account to savings each month.
Reduce interest-bearing debt: Pay off as much debt as possible.
Use tax-advantaged savings accounts: Consider using tax-advantaged savings accounts, such as an IRA or 401k, to save for a house.
Take advantage of grants and assistance programs: Research grants and assistance programs available to single parents and take advantage of any that you may qualify for.
Make extra money: Look for ways to make extra money, such as a part-time job, side hustle, freelance work, or selling items online.
Live below your means: Live below your means and make sacrifices if necessary.
Talk to a financial advisor: Speak to a financial advisor or real estate agent to get advice on the best way to save for a house.
Does child support count as income for a mortgage?
Yes, child support may be counted as income when applying for a mortgage. Lenders will usually require proof of the payments, such as a tax return or court order.
Bottom Line
None of the home buying programs outlined above are specific to single mothers. However, hopefully, you can see that it’s possible to find an affordable mortgage with a low down payment. Purchasing a home as a single mother can be challenging, but it’s also very doable. Make sure you compare your options and find the program that works best for your family.
Tony Anderson/Getty Images: Illustration by Issiah Davis/Bankrate
If you’ve never owned a home before — or it’s been a while since you have — you might qualify for a first-time homebuyer loan or assistance. First-time buyer loans typically have more flexible requirements, such as a lower down payment and credit score. Many help buyers with closing costs and the down payment through grants and low-interest loans. Here is our comprehensive guide to both first-time homebuyer loans and programs.
What is a first-time homebuyer program?
First-time homebuyer programs help make homeownership more affordable for people who haven’t ever owned a home (or haven’t owned a home in some time). These programs come in a variety of flavors, but usually include a mortgage with a better interest rate, lower down payment requirement and other upsides like down payment and closing costs assistance.
Types of first-time homebuyer programs
Low-down payment conventional loans: Conventional loan programs that require just 3 percent down
Down payment assistance (DPA) programs: Loans, grants and matching programs to help you with your down payment
Federal first-time homebuyer programs: Loans and programs backed or offered by the federal government
State, non-profit and employer-sponsored programs: Homebuying assistance at the local level
Along with these, first-time homebuyers who are students or in a certain profession might qualify for a special type of loan, as well. Below, we’ll break down what each of these programs entails:
Low-down payment conventional loans
Conventional loans are the most popular type of mortgage, and only require 3 percent down. This makes them an attractive option for first-time homebuyers who might not have considerable savings to draw from. These low-down payment loans include the:
Conventional 97 mortgage: This conventional loan, backed by government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac, requires just 3 percent down and a minimum credit score of 620. It also requires you to pay for private mortgage insurance (PMI), a type of policy that protects your mortgage lender should you stop paying back your loan. You’ll pay these premiums until you pay down your balance to 80 percent of the value of your home.
HomeReady mortgage: Similar to the Conventional 97 program, Fannie Mae’s HomeReady mortgage program also requires just 3 percent down (with PMI, although it might be less expensive).
Home Possible mortgage: Freddie Mac’s Home Possible mortgage program is the counterpart to the HomeReady mortgage, with a 3 percent minimum down payment requirement.
HomeOne mortgage: This Freddie Mac-backed mortgage also allows for just 3 percent down with PMI, but is available only to first-time homebuyers.
You won’t get your low-down payment conventional loan directly from Fannie Mae or Freddie Mac. Instead, you’ll work with a mortgage lender of your choosing, which might be a bank, online lender or credit union, for example.
Through state housing finance agencies (HFAs), Fannie and Freddie also back another set of 3 percent down payment programs, called HFA Preferred and HFA Advantage, respectively.
Down payment assistance (DPA) options
There are many types of down payment assistance, including:
Down payment assistance loans
Many first-time homebuyer programs offer a lower-cost first mortgage to help you buy the home, then a second mortgage to help you cover your down payment and closing costs. These second mortgages are commonly structured as either:
Low-interest loans: A low-interest second mortgage you’ll repay over the course of a few years
Deferred-payment loans: A no-interest second mortgage you’ll repay when you sell the home, refinance or pay off your first mortgage
Forgivable loans: A second mortgage you won’t have to pay back so long as you stay in the home for a certain amount of time (the exact period depends on the program) and stay up-to-date with your mortgage payments
Down payment savings match
Down payment savings match programs provide matched funds up to a certain amount. The money can only be used for your down payment and closing costs.
One type of matched savings program is an Individual Development Account (IDA). If you qualify, you’ll work with an assigned counselor to deposit funds into an IDA over a set period of time. If you follow the savings plan, you’ll receive the match when you close on the home.
Down payment grants
A down payment or first-time homebuyer grant is essentially free money to help you cover your down payment or closing costs. The grants are usually awarded to low- or moderate-income borrowers, typically defined as those earning no more than 80 percent of the median income in their area. They might have other requirements, too, like a minimum credit score and maximum home purchase price.
Federal first-time homebuyer programs
Government-backed mortgage loans
The Federal Housing Administration (FHA), Department of Veterans Affairs (VA) and Department of Agriculture (USDA) back mortgage programs that are often an option for first-time homebuyers. These loans aren’t created or funded by these agencies, however; they’re offered through approved mortgage lenders throughout the U.S. Some lenders even specialize in certain types. Here’s an overview:
FHA loan: Insured by the Federal Housing Administration, FHA loans allow you to buy a home with a minimum credit score of 580 and as little as 3.5 percent down, or a credit score as low as 500 with at least 10 percent down. If you put down less than 20 percent, you’ll pay FHA mortgage insurance premiums (MIP), similar to the insurance you’d pay for a low-down payment conventional loan. The difference, though: You can’t stop paying FHA MIP unless you refinance out of an FHA loan entirely.
VA loan: The VA guarantees home loans for eligible U.S. military members (active duty, veterans and surviving spouses). These don’t require a down payment, though there is a funding fee.
USDA loan: USDA loans don’t require a down payment, but you’ll need to purchase in a designated rural area and all under area-specific income limits to qualify.
Good Neighbor Next Door
The Good Neighbor Next Door program, overseen by the U.S. Department of Housing and Urban Development (HUD), is geared toward law enforcement officers, firefighters, emergency medical technicians and pre-kindergarten through 12th grade teachers. If you work in one of these professions, you could buy a home in a “revitalization area” for 50 percent off, provided you live in the home for at least three years. You can search for properties available in your state on the program’s website.
HomePath Ready Buyer Program
Fannie Mae’s HomePath ReadyBuyer program is geared toward first-time buyers interested in a foreclosed home. After taking a required online homebuyer education course, you can receive up to 3 percent in closing cost assistance toward the purchase of a property that’s been foreclosed and is now owned by Fannie Mae.This program isn’t for everyone, however: Not only are you limited in your choice of properties, but the options (like many foreclosed homes) might need lots of repairs.
Energy-efficient mortgage (EEM)
Making green upgrades can be costly, but you can get an energy-efficient mortgage (EEM) (either a conventional loan or one backed by the FHA or VA) to help finance them. This type of mortgage allows you to tack the cost of energy-efficient upgrades (think new insulation, a more efficient HVAC system or double-pane windows) onto your primary loan, without requiring a larger down payment.
However, EEMs come with larger mortgage payments (since you’re borrowing more), and there are certain requirements, including an energy assessment. Those larger payments might be worth it, though, as you could wind up saving on your utility bills in the long run.
Native American Direct Loan (NADL) and Section 184 program
The Native American Direct Loan (NADL), guaranteed by the VA, and Section 184 loan, guaranteed by HUD, provide financing to eligible Native American homebuyers. A Section 184 loan requires just 2.25 percent down. The NADL program has no down payment requirement, but is only for Native American veterans and their spouses.
First-time homebuyer programs by state
Each U.S. state operates a housing finance authority (HFA) that serves to encourage homeownership, among other responsibilities. Here are these HFAs and other first-time buyer resources by region:
Nonprofit programs
Nonprofit programs can offer exceptional value to first-time homebuyers seeking an affordable mortgage. These options tend to be reserved for homebuyers with paychecks that are significantly smaller than the median income in their area and distinguish them as a low- or moderate-income buyer, or buyers who fit certain demographic or other criteria.
Neighborhood Assistance Corporation of America
The Neighborhood Assistance Corporation of America (NACA) is a nonprofit that provides low-rate mortgages to low- and moderate-income borrowers without requiring a down payment or closing costs or any mortgage insurance. The nonprofit doesn’t use credit scores to qualify you, either: Instead, it looks at other factors such as rent payment history.
Habitat for Humanity
If your annual income is 60 percent or less of the median income in your area, you might qualify for Habitat for Humanity’s homeownership program. Along with not exceeding the income threshold, you’ll need to contribute sweat equity — in other words, help build the home or a home for another applicant — to qualify.
Employer-sponsored programs
Employer-assisted housing (EAH) programs help employees with housing needs, usually in neighborhoods near the workplace. This assistance can come in many forms, such as a forgivable loan coupled with required homeownership education.
EAH programs are often limited to certain occupations, and there could be other restrictions, such as a first-time homebuyer or specific tenure requirement, or income limits.
First-time homebuyer programs for students
If you recently graduated from college, you might be eligible for help buying your first home. For example, the state of Ohio offers a Grants for Grads program with up to 5 percent down payment assistance for anyone who finished an academic program in the last 48 months. These programs typically come with a requirement to stay put for a given time (in Ohio, it’s five years), or else you’ll need to repay the funds.
Next steps: How to apply for a first-time homebuyer program
Your mortgage lender can help you determine whether you qualify for a first-time homebuyer program, as well as apply for one if you do. You can also check out your state’s housing finance agency (HFA) website to learn eligibility criteria and take next steps to apply.
First-time homebuyer FAQ
A first-time homebuyer refers to a homebuyer who hasn’t owned a home previously. However, in terms of qualifying for a first-time buyer program, it often doesn’t have to be your very first time. Many programs define “first-time homebuyer” as a buyer who hasn’t owned a home within the last three years.
First-time homebuyer programs are geared toward people who have never owned a home. With some programs, this means people who haven’t owned a home in the past three years. Depending on the program, the qualifications might also include not exceeding a certain income or buying a home above a specific price point.
The best type of mortgage for a first-time homebuyer (or any borrower) is one that’s affordable. This might mean a loan that has a lower interest rate, lower down payment requirement, low or no mortgage insurance and other ways to save.
That said, many first-time buyers go with a 30-year, fixed-rate mortgage because the monthly payments are lower and more predictable. Two popular 30-year fixed-rate choices: conventional loans and FHA loans.
First-time homebuyer education programs are designed to help you understand the various aspects of owning a home. To qualify for many first-time buyer loan programs, you’ll need to take a course. If you’re obtaining a conventional loan, you might be able to take the Fannie Mae HomeView online class to satisfy this requirement. Check with your loan officer to learn your options.
The city of Laguna Beach, Calif. recently offered details of its city-sponsored aging-in-place program, dubbed “Lifelong Laguna,” in a profile published by CNBC. It provides new insight into the measures cities can explore to more easily facilitate aging-in-place goals for older residents.
2021 research from AARP indicates that 77% of adults at or over the age of 50 want to stay in their homes as they get older, but the figure in Laguna Beach is much higher. There, the figure is closer to 90% according to Rickie Redman, director of Lifelong Laguna.
Originally piloted in 2017, Lifelong Laguna is a program that enlists a local area nonprofit to encourage support for aging in place.
“Lifelong Laguna is based on the Village movement, where aging in place is encouraged with community support,” the story reads. “The Laguna Beach program aims to fulfill a specific need for a city where approximately 28% of residents are age 65 and over, while local assisted living and memory care services are scarce.”
Much of the city’s older population has lived in Laguna Beach since they were in their 20s and 30s. Now in their 70s and 80s, they simply do not want to be displaced to live somewhere else, even if another area or dedicated facility could more easily attend to their needs as they age.
“They make this city unique,” Redman told CNBC, saying many of the older residents can trace their journey here to the city’s “artistic roots,” the story explained. “They’re the placeholders for the Laguna that we now know.”
The program currently serves about 200 older residents, and there is no direct cost to them for participating. It is entirely funded by grants and local fundraising efforts, according to Redman.
“Its services address a wide range of needs, including a home repair program the city operates in collaboration with Habitat for Humanity, nutrition counseling and end-of-life planning,” the story explained.
Other cities and communities have adopted similar systems, as aging-in-place preferences have increased dramatically since the onset of the COVID-19 coronavirus pandemic. Data from Genworth Financial indicates that roughly 70% of the 10,000 baby boomers who will turn 65 every day until 2030 will require long-term care at some point in their later lives, CNBC reported.
“There definitely is a mindset change, where people are saying, ‘I do want to stay put, I don’t necessarily want to move into a nursing home or into assisted care,’” said Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors (NAR) to CNBC.
One beneficiary of the Laguna Beach program told the outlet that her needs have been attended to very promptly, from assistance with yard clean-up to the organization of end-of-life services for her recently deceased husband.
“Anything that I’ve needed, I’ve gotten help,” said Sylvia Bradshaw, an 84-year old Laguna Beach resident when describing her membership in the program.