Around half of Americans have a life insurance policy. Financial advisors recommend having life insurance coverage that’s 10 to 15 times the amount of the insured’s annual income.
But additional insurance may be recommended to cover costs such as outstanding debt, children’s college education costs, or lifetime support of a disabled family member. Perhaps it’s no surprise that about one in five people who have insurance think they don’t have enough.
Getting to that life insurance protection point may be made easier by purchasing multiple life insurance policies. How many life insurance policies can a person have? There is no legal limit, and each person has unique life insurance needs, which will influence the number of life insurance policies held. There are also upsides and downsides to buying multiple insurance policies.
Why Have Multiple Insurance Policies?
Time is a big influencer on having multiple life insurance policies. For instance, a financial consumer may still have a whole life insurance policy that was taken out in childhood.
As the policyholder grows up and has a family, they may decide to take out a second life insurance policy to cover those financial dependents.
Or, an existing life insurance policy holder may need additional coverage for specific needs. Consider a homeowner with a family and a home mortgage. The homeowner may need a second life insurance policy to cover the mortgage owed on the home in the event he or she passes away.
Even smaller expenses can trigger the need for an extra life insurance policy. For example, the head of a household might consider buying an extra life insurance policy to cover the cost of funeral expenses, so the grieving family will have one less thing to worry about.
Recommended: 8 Popular Types of Life Insurance for Any Age
How Multiple Life Insurance Policies May Work
Since buying a home or starting a family has such a big impact on a family’s finances, adding more life insurance is certainly understandable.
In that context, adding extra life insurance in the form of an additional policy may make good sense. Using a policyholder with a mortgage and a family as an example, here’s how having multiple life insurance policies might work.
Term Life Policy: Enough life insurance to cover the cost of a home mortgage in the event the policyholder passes away.
Let’s say the head of household needs to cover a $300,000 mortgage. They buy a $300,000 term life insurance policy that expires in 30 years, when presumably the mortgage will be paid off.
If, in the event the policyholder dies sometime during those 30 years, the term life insurance policy pays $300,000, which the family can use to pay off the mortgage and remain in the home. If the policyholder is still alive after the 30-year term ends, the term life insurance contract ends with no more premiums owed on the policy, but no death benefit either.
Additional Term Life Policy
The head of household wants to leave his or her family in good financial shape after passing on. That means not only covering the costs of a mortgage, but also household bills, health care expenses, and the cost of college education for the children. A 20-year policy for $200,000 might ensure the family’s ability to cover necessary expenses, should the policyholder die during the policy term.
In the above example, the policyholder “doubles up” by purchasing one term life insurance policy to cover mortgage protection, so the family can continue living in the home without fear of having to cover mortgage costs and a separate term life policy meant to cover basic household and life expenses .
Life Insurance Laddering
Another approach is buying three life insurance policies and possibly paying less than a large single life insurance policy might cost.
The strategy is called “laddering.” Instead of buying one large life insurance policy for $1 million, for example, the policyholder might buy three smaller, term life insurance policies that equal $1 million, each for a different term. For example:
• A 10-year term life policy for $500,000 worth of coverage. • A 20-year term life policy for $300,000 worth of coverage. • A 30-year term life policy for $200,000 worth of coverage.
By stacking, or laddering, life insurance policies over different timetables, the policyholder is getting the exact financial coverage he or she needs at different stages of their life.
The laddering concept could give the policyholder some financial leverage with their insurance strategy. Typically, as a policyholder grows older, the need for life insurance declines, as the mortgage is paid down and children are grown and financially responsible for themselves.
Note that each person’s insurance cost will be different based on age, gender, health, hobbies, and other factors, so laddering may not be the right choice for everyone.
Pros and Cons of Having Multiple Life Insurance Policies
A person’s unique coverage needs will influence any decision to expand a current policy, add a new life insurance policy, or simply keep their current life insurance as it currently stands.
Pros:
Adding to a group life policy. Those with group life insurance subsidized by their employers may not have adequate financial protection. Coverage through an employer may not follow the employee, either, so if a person changes jobs, typically that coverage will no longer be in effect. Buying additional coverage could give a policyholder the life insurance protection they need.
Providing extra protection for life stages. Big “life stages” events like buying a home, having children, or launching a business may increase the need for more life insurance. As more value is added to a person’s net worth, the need for adequate life insurance to ensure their family is protected after they’re gone increases. An extra life insurance policy may provide that extra cushion of financial support. Term life insurance places a limit on the policy’s length based on insurance protection needs
Curbing risk. It doesn’t happen often, but insurance companies can go out of business. While an extra life insurance policy might add another layer of financial protection in the event of this worst-case scenario, consumers do have some protection through insurance guaranty associations. These guaranty associations provide benefits to policyholders and beneficiaries of policyholders in the case of an insurance company becoming insolvent. Insurance companies are legally required to join guaranty associations in the states where they do business.
Cons:
Coverage denial. Applying for multiple life insurance policies may signal companies that you’re attempting to purchase more life insurance than you actually need.
Insurance companies can and do share encrypted customer data, including the existence of multiple life insurance applications, via an industry organization known as the Medical Information Bureau (MIB).
Insurance providers rely on the MIB to ensure they’re not providing more life insurance coverage to a consumer than is necessary. Thus, having two or more life insurance applications under consideration by different companies could draw attention and end up in a denial of coverage based on a consumer’s intent to purchase more life insurance coverage than is necessary. Generally, during a life insurance interview, insurance companies will ask about other coverage an applicant already has in force or has pending. This double checking is to make sure a person will not be overinsured. The MIB also helps prevent fraud by proposed insureds because the MIB includes previous denials that could be left off of an application.
More complex record keeping. Multiple policies means multiple payments and more paperwork to keep track of. A missed payment could mean termination of a policy. For people who have a difficult time keeping track of household records and payments, multiple policies may not be a good idea. It can be easier to manage everything if all policies are through the same insurer.
Possible increasing premiums. Want to keep the cost of life insurance in check? Premiums are generally less expensive for young, healthy people. Purchasing one larger policy at a relatively young age may cost less overall.
Alternative to Having Multiple Policies
One possible strategy for maximizing life insurance benefits without taking out multiple policies is the use of insurance riders, which can add benefits to a policy without having to take out a new one. An insurance rider is supplementary coverage to an existing policy.
Some examples of riders are conversion of an addition of long-term care insurance to a basic life policy or accidental death and dismemberment for someone with a particularly dangerous job or hobby.
Policies may include conversion privileges, but riders can extend the amount of time the policyholder can convert. The cost of an insurance rider varies depending on the type of rider and the insurer. Each person’s insurance needs will determine which, if any, rider is necessary, and if the cost is affordable to them.
Recommended: What Is Life Insurance and How Does It Work?
The Takeaway
By purchasing multiple life insurance policies, policyholders can have extra coverage that pays out on a specific debt, like a mortgage payment, after the policyholder passes away. Additionally, multiple policies can help consumers get the exact life insurance coverage they need — when they need it most.
If you’re shopping for life insurance, SoFi has partnered with Ethos to offer competitive life insurance policies that are quick to set up and easy to understand. You can apply in just minutes and get an instant decision. As your circumstances change, you can easily change or cancel your policy with no fees and no hassles.
Complete an application and get your quote in just minutes.
Social Finance Life Insurance Agency, LLC (SoFi Agency) does not issue or underwrite insurance. SoFi Agency is compensated by Ethos for each issued term life application submitted.
The policies offered are from Ethos Technologies Inc. Coverage and pricing is subject to eligibility and underwriting criteria. Ethos Technologies Inc. (Ethos) operates in some states as Ethos Life Insurance Services. CA license #0L28949; AR license #100164629. Ethos offers policies issued by the carriers listed at www.ethoslife.com/carriers. Products and their features may not be available in all states. To help avoid requiring a medical exam, the Ethos application asks certain health and lifestyle questions.
SoFi Agency does not guarantee the services of any insurance company. Once you reach Ethos, SoFi is not involved and has no control over the products or services involved.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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While individual needs and health issues will primarily dictate how a person spends their final years, a new study shows that home-based care is a leading outcome for older Americans. This conclusion comes from a new study by researchers at Rutgers University in New Jersey. Hospice News first reported the findings.
“The aim of this study was to determine the trajectories for place of care in each quarter during the last three years of life among Medicare beneficiaries and the factors associated with these trajectories,” the researchers explained. “A retrospective cohort was assembled from Medicare beneficiaries who died in 2018, and a 10% random sample of the cohort was analyzed.”
The final results were ultimately sorted into three predominant “clusters,” they explained, including home care, skilled home care and institutional care. The far-and-away preference for the sample was in some type of home-based care, according to the findings.
“Nationally, over half (59%) of Medicare beneficiaries were in the home cluster, one-quarter (27%) were in the skilled home care cluster, and the rest (14%) were in the institutional cluster,” the researchers said. “There were large variations by state in the use of services during the last three years of life.”
Home care without a skilled nursing element was most frequent among Medicare beneficiaries in Alaska (81.5%), Puerto Rico (81.4%), Hawaii (72.9%), Arizona (69.2%) and Oregon (68.9%). They were least frequent among beneficiaries from Massachusetts (47.1%), Louisiana (47.8%), Rhode Island (48.3%), and Connecticut (48.6%).
“Our findings are similar to those reported in a recent prospective cohort study using a representative sample from the National Health and Aging Trends Study (NHATS), which also found that 58% of NHATS participants remained at home and 17% transitioned to or died in an institutional setting,” the Rutgers study found. “Our findings are also consistent with the recent downward trend of deaths in acute care hospitals and upward trend of deaths in home and community settings.”
Still, while the primary preference appears to be aging at home, more information is required to fully understand these preferences, the researchers concluded.
“While the majority of older adults spent their final years at home with minimal use of skilled home care or institutional care until the final months of life, 40% had major health service needs,” they said. “Extended use of skilled home care or institutional care was more frequent among older adults living with multiple chronic conditions, including dementia.”
Future research that aims to understand “the health care systems and policy factors that influence place of care trajectories” could help advance refinement of the care experience, health of the population and associated care costs, they added.
Aging-in-place preferences among older Americans are well documented, and the drivers of these preferences have also been subjects of recent discussion. Long-term care is also an increasingly large priority for older Americans.
The reverse mortgage industry often aims to position its product offerings as conducive to the goals of aging in place. The results of the Rutgers study may shed light on the broader considerations that lead older Americans to seek out certain end-of-life care paths, particularly as the U.S. population grows older more quickly.
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Making a financial plan can be intimidating, especially if you don’t know all of the essential budget categories you should include. Budgeting isn’t a one-size-fits-all process either, as the importance of each category will largely depend on your specific financial situation.
This article will review the top 12 budget categories that can bolster your financial plan. Credit.com also has multiple personal finance resources that can enhance your financial literacy.
Several important budget categories account for housing, transportation, health care, entertainment expenses, and more.
Key Takeaways:
The prioritization of budget categories will be unique to your needs.
Some expenses have fixed prices, while others have variable costs. You’ll need to account for both from one month to the next.
Tools like money apps and budget spreadsheets can help you visualize your spending habits.
Table of Contents:
Why Do I Need a Budget?
A budget can ensure that you aren’t caught off-guard by bills throughout the month—especially near the month’s end or right before you get paid. Keeping a budget can also provide long-term data based on your spending habits and serve as a snapshot of your priorities.
Effective budgets can help you plan for longer-term goals, like retirement, and inform you of what expenditures truly make you happy—and which ones aren’t necessary.
Fixed Expenses vs. Variable Expenses
Fixed expenses refer to items that essentially cost the same each month, with very little fluctuation in terms of pricing. Mortgage and rent payments, auto loan payments, and internet service bills will likely fall into this category.
Variable, or flexible, expenses can drastically differ from one month to the next. The amount you spend on groceries, clothes, entertainment, and even medical appointments can all vary over time.
Top 12 Budget Categories to Add to Your Plan
The following budget categories can help you map out your monthly expenses. Depending on your unique circumstances, these categories may need to be adjusted in terms of their priority.
1. Housing Expenses
Housing often takes top priority as your living space is directly tied to your long-term health and safety. You also need a stable housing situation to perform well at work and ensure that you have the funds to make your mortgage or rent each month.
While there’s no strict maximum for the housing category, you can expect to spend anywhere from 25% to 35% of your income on your mortgage or rent payments. If your housing budget exceeds more than 35% of your monthly income, refinancing your mortgage or looking for another living space might be more expense-friendly in the long run.
Items that fall in housing expenses:
Rent
Mortgage Payment
Appliances
Household Repairs
2. Utilities
The ability to live comfortably in your home is just as crucial for your health as actually having one, which is why utilities are usually another high-priority item. Many residential buildings in some urban areas have ordinances that require certain utilities, like water and electricity, to be considered safe living.
Utilities rarely come close to the top of the list of expenses in terms of cost, and you can reduce their cost with proper management. Depending on their usage, you can expect to spend around 5% to 10% on monthly utilities.
Items that fall in the utilities category:
Electricity
Water
Telephone
Natural gas
Sewer
Trash
Heating
Air conditioning
3. Transportation Costs
Owning or leasing a vehicle, along with repairing it, can be another high-priority expense. Some areas may complement alternative means of transportation, such as public transit or biking—which would result in much less money going toward this category.
The cost of owning a car includes the tags, licenses, and maintenance on top of the monthly car payments. Depending on your method, transportation or travel expenses will likely cost you anywhere from 10% to 15% per month.
Items that fall in transportation costs:
Gasoline
Car payment
Registration fees
Vehicle repairs and maintenance costs
New tires
4. Groceries
Groceries (not food from restaurants) and water encompass our basic needs. Store-bought groceries and water may require a large chunk of your income, though this category offers a lot of flexibility in terms of total spending.
Cooking dinner at home with groceries can help you save money, as many home-cooked meals can last multiple days. You should probably expect to spend between 10% and 15% of your monthly income on food expenses.
Items that fall in the food category:
Grocery budget
School lunch
5. Insurance
This broader category covers numerous subcategories that apply to different people. For example, if you live in a large, urban area with well-run public transportation, you may not have to worry about auto insurance.
Insurance may be classified under different categories depending on who you ask. Some pundits include health care in this category, for example. Depending on what type of insurance you need and your insurance premiums, you can look to spend anywhere between 10% to 25% of your income on this category.
Items that fall in the insurance category:
Life insurance
Auto insurance
Renters insurance
Homeowners insurance
Health insurance
Vision insurance
Disability insurance
Dental insurance
Vision insurance
Pet insurance
6. Health care
This category may have higher or lower priority depending on your specific health needs. Health and dental insurance in America is also quite costly—making them one of the primary reasons Americans go bankrupt.
Health care costs include annual checkups, clinic visits, prescription medications, and general medicines, like pain relievers. Health care is a variable expense because some months can be costly while others don’t have any expenses. Even when you don’t have any expenses, it’s a good idea to put away a little cash for a rainy day.
Items that fall in the health care category:
Anticipated copays
Prescription medications
Orthodontic work (braces)
Prescription eyeglasses
Primary care visits
Dental care visits
7. Savings
Everyone needs some kind of emergency fund to cover those unforeseen expenses. Regularly dedicating a small portion of your monthly income can help you save for major life events down the road.
There’s no hard line about what amount you should save, but a safe bet is between 5% and 10% of your monthly income. Saving this amount can help you handle emergency expenses and create a nest egg for a future big purchase.
Items that fall in the savings category:
Emergency fund
Health savings accounts
Fun money
Three to six months’ worth of expenses
Saving for a specific purchase (vehicle, college savings, vacation, etc.)
8. Retirement
While you could argue that retirement or a 401(k) is a type of savings, we refer to savings as money that can be used for any expense without penalty. Retirement accounts like IRAs help you save money that’s intended for use in the future. If you take money out of your retirement account before the preset time (unless you have a 457(b) account), you will incur a 10% tax penalty.
Much like savings, this is another category without a hard-line amount that you should contribute but should see at least 5% to 15% of your income. Ideally, you can primarily rely on this money once you’ve retired.
Items that fall in retirement:
Employer-sponsored retirement plan
401(k)
403(b)
Roth IRA
457(b)
9. Debt
This category applies to a significant portion of the U.S. population—especially those who have a student loan, credit card debt, or personal loans. Debt is a consideration that often has a lower priority level because we can pay it off over time. That said, it’s important to make sure you don’t fall behind on your payments as the penalties and fees can compound if left unchecked.
Because everyone’s situation is different, there’s no given amount of your monthly income you should dedicate to debt payments. We do, however, recommend that you pay more than the monthly minimum.
Items that fall in the debt category:
High-interest credit cards
Vehicle loan
Student loans
Personal loans
Medical bills
10. Personal Care and Hygiene Items
This category encompasses both wants and needs. Toilet paper and toothpaste should be considered “needs,” while designer clothes or expensive watches are examples of “wants.”
Because most personal expenses are lower priority, there’s no expected amount you should budget for this category, but it should remain relatively low on your list of priorities. Ensure that everything else above on this list is covered first, then look to see what you can spare on these purchases.
Items that fall in the personal care and hygiene category:
Shampoo
Deodorant
Toothbrush/toothpaste
Gym memberships
Shoes
Dry cleaning
Toiletries
Laundry detergent
Cleaning supplies
Diapers
Hair care
11. Entertainment
This category sits at the bottom of our list for a good reason, but it’s still essential to include. If you find yourself in a budget crunch, this is easily one of the first categories you should reduce until finances stabilize.
Sporting events, vacations, or streaming services like Netflix fall into this category. Given its otherwise low priority, there is no set amount you should spend on entertainment, and extra money can shift from month to month.
Items that fall in the entertainment category:
Books
Electronics
Restaurant dining
Concert tickets
Events
Vacations
Movies
Coffee
12. Other
This low-priority category covers pretty much anything else not already discussed. That can include property taxes that are a high priority in most circumstances, but you can often work with the IRS to get a debt repayment plan.
Various “other expenses” might also include donations, parking fees, child support, gifts, and school supplies, depending on your circumstances.
Some of these other expenses are significantly more important than others, but things like home improvement can be considered a kind of investment.
Items that fall in the other budget category:
Miscellaneous expenses
Child care
Holiday decor
Special occasions
Alimony
Anniversary presents
Tutoring
Private school
How Do I Make a Budget?
Considering the budget categories we presented in this article, one budgeting method that could work for you is a monthly budget spreadsheet. Or, you can use a budgeting app like Mint or another high-end competitor.
There are plenty of resources to use, so you should do lots of research on any budgeting apps that you consider downloading. Since not all of the apps work the same, search through different apps to find what best serves your budgetary needs.
What Is a 50/30/20 Budget?
Numerous financial pundits advocate for a 50/30/20 budget scheme, in which 50% of your income goes to necessary expenses, 30% goes to savings accounts, and 20% goes to wants and miscellaneous expenses. It’s also not uncommon to see people devote 30% of their funds to wants and 20% to savings.
This strategy often faces scrutiny during periods of economic strife, such as high inflation rates. Nevertheless, many budgeting apps may recommend this plan if your current income can support it.
Refine Your Budgeting Plans With Credit.com
The categories we’ve discussed today, along with their corresponding priority levels, can all vary from person to person. Building the best budget for your specific needs calls for a bit of craftiness and professional assistance.
Credit.com offers a wealth of tools and resources to help build credit, such as a free monthly budget template and services that allow you to report your utility and rent to the credit bureaus.
A home equity loan allows you to borrow a lump sum against your home’s equity, usually at a fixed interest rate that’s lower than other forms of consumer debt.
The amount you can borrow with a home equity loan is based on the current market value of your home, the size of your mortgage and personal financials like your credit score and income.
Home equity loans are best used for five-figure renovation or repair projects — which can garner you a tax deduction on their interest — or to consolidate other debts.
Home equity loans drawbacks include putting your home at risk of foreclosure and their lengthy application process.
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What is a home equity loan?
A home equity loan is a type of second mortgage secured by the equity in your home. It offers a set amount at a fixed interest rate, so it’s best for borrowers who know exactly how much money they need. You’ll receive the funds in a lump sum, then make regular monthly repayments amortized over the term of the loan, typically as long as 30 years.
Because your home is the collateral for the loan, the amount you’ll be able to borrow is related to its current market value. The interest rate you receive on a home equity loan (as with other loans) will vary depending on your lender, credit score, income and other factors.
Home equity loans in 2024
While the housing sales have cooled in some areas in recent months due to higher mortgage rates, housing prices have continued to post gains – good news for the net worth of American homeowners. According to the Board of Governors of the Federal Reserve System, U.S. households possess a collective $32.6 trillion in home equity as of the third quarter of 2023.
That’s a record high, and it means that the vast majority of homeowners are sitting on a huge pile of equity that they can leverage to access cash, including through a home equity loan. In fact, according to TransUnion’s latest “Home Equity Trends Report,”, the median amount of tappable equity per homeowner is $254,000, and some householders are in an even better position: 5.8 million of them have more than $1 million of available equity.
2023 saw a reversal in the demand for tapping all that equity. As rates jumped, the number of borrowers interested in home equity loans – along with HELOCs, their line-of-credit cousins – dropped in the back half of last year. TransUnion’s data shows that HELOC originations in the third quarter of 2023 fell by 28 percent versus the year before. Home equity loans were only down by 3 percent, though – perhaps a reflection of a homeowner’s confidence in the predictability of a fixed-rate home equity loan versus the volatility of variable-rate HELOC (more on that below).
10.16%
The average $30,000 HELOC rate as of the beginning of January 2024 — up from 7.62% in January 2023.
Source:
Bankrate national survey of lenders
As for 2024: The potential for Federal Reserve interest rate cuts could be good news for home equity loans. While the forecast doesn’t call for massive savings — for HE loans, anyway — any reduction in borrowing costs saves prospective borrowers some cash, and encourages them to turn to this financing tool.
What are average home equity loan interest rates?
As of late January 2024, home equity loan rates for the benchmark $30,000 loan are averaging just under 9 percent, within a tight range of 8.5 to 10 percent. While high compared to their average of six percent in 2022, that’s significantly lower than other forms of consumer debt. Credit card rates are lingering above the 20-percent mark, and personal loans can stretch into the 25–35 percent range for borrowers with less-than-perfect credit scores.
How does a home equity loan work?
When you take out a home equity loan, the lender approves you for a loan amount based on the percentage of equity you have in your home and other factors. You’ll receive the loan proceeds in a lump sum, then repay what you borrowed in fixed monthly installments that include principal and interest over a set period. Although terms vary, home equity loans can be repaid over a period as long as 30 years.
Since the loan is secured by your home, the property is at risk for foreclosure if you can’t repay what you borrowed. If that happens, it can cause serious damage to your credit score, making it harder for you to qualify for future loans.
You can use the funds from a home equity loan for any purpose, but there’s a possible tax benefit if you use the money to improve your home. You can deduct the interest (up to the limit) if the home equity loan is used to “buy, build or substantially improve” the property. To do this, you’ll need to itemize your deductions.
Home equity loan requirements
Lenders have different requirements for home equity loans, but generally, the standards include:
Credit score: Mid-600s or higher
Home equity: At least 20 percent
Employment and income: At least two years of employment history and pay stubs from the past 30 days
Debt-to-income (DTI) ratio: No more than 43 percent
Loan-to-value (LTV) ratio: No more than 80 percent
What should you use a home equity loan for?
Some of the best reasons to use a home equity loan include:
Upgrading your home: Whether you’re looking to remodel your kitchen, add an in-law suite or install solar shingles on your roof, a home equity loan can be a smart way to pay for the enhancements. You’ll be improving your home, which means you get to enjoy living there more; and when you’re ready to sell, the upgrade can potentially make it more attractive (and more valuable) to buyers. Plus, you can qualify for some tax benefits — a deduction on the interest — when you use a loan to invest in the property in this way.
Consolidating high-interest debt: If you’ve been struggling to pay off debts with high costs like credit cards, a home equity loan can make a big difference in the amount of interest you’re paying. However, if you’re considering this route, there are two important caveats. First, you need to have a real commitment to not build those credit card balances up again. Second, the amount of debt needs to be fairly significant. Credit card balance transfers can be a better option if you’re aiming to pay off less than $10,000.
Covering large medical bills: Health care can be incredibly expensive, and medical problems often arise unexpectedly. If you or a family member needs a procedure, treatment or long-term care that isn’t fully covered by insurance, a home equity loan could be a good way to handle the costs.
When you should avoid getting a home equity loan
If you’re thinking about using a home equity loan and any of these describe you, think again:
Covering discretionary spending: You don’t have to go on that pricey vacation for spring break (find something fun to do for a staycation). You also don’t have to host a wedding (go to the courthouse). While both of those kinds of big expenses can be fun, they are not reasons to hock your home. Save for longer, or find a more affordable way to make them happen.
Paying for college: You may find lenders who advocate paying college tuition via home equity, but this is a risky move. There is no guarantee that your child is going to graduate, but there is certainly a guarantee that you need to have a home. Look at taking out federal student loans in your child’s name instead: Their interest rates are lower, and they come with benefits like income-based repayment options.
Paying for a relatively small project: If you only need a small amount of cash – think less than $20,000 – you may be better off looking for other options such as a credit card with a long zero-percent APR period or simply taking longer to set aside some savings.
How much can I borrow with a home equity loan?
To figure out how much you might be able to borrow with a home equity loan, you first need to understand how much home equity you actually have. Your equity is the essentially difference between how much your home is worth and how much you owe on your first mortgage. For example, if your home’s current fair market value is $500,000 and you owe $250,000, you have a 50 percent equity stake.
Most lenders will let you borrow up to 80 percent of your equity stake (some let you go as high as 85 or even 90 percent). However, there’s another factor to consider: How much all your loans amount to or your combined loan-to-value ratio (CLTV). Most home equity lenders will cap your total amount of home-secured debt – including your first mortgage – at 80 percent of the home’s market value. So, in that case, you would likely be able to borrow up to $150,000, taking your total mortgage debt to $400,000 (80 percent of $500,000). Bankrate’s home equity calculator can help you estimate your exact borrowing power.
Home equity loan pros and cons
Pros of home equity loans
Attractive interest rates: Home equity lenders typically charge lower interest rates compared to the rates on personal loans and credit cards. This is because home equity loans are a type of secured debt, meaning they’re backed by some sort of collateral (in this case, your house) — which makes them less risky for the lender, compared to unsecured debt, which isn’t backed by anything.
Fixed monthly payments: Home equity loans offer the stability of a fixed interest rate and a fixed monthly payment. This might make it easier for you to budget for and pay each month. This also eliminates the possibility of getting hit with a higher payment with a variable-rate product, like a credit card or home equity line of credit (HELOC).
Tax advantages: You could be eligible for a tax deduction if you use the loan proceeds to substantially improve or repair the home. Check with an accountant or tax professional to learn more about this deduction and to determine if it’s available to you.
Cons of home equity loans
Home on the line: Your home is the collateral for a home equity loan, so if you can’t repay it, your lender could foreclose.
No flexibility: If you’re not sure how much money you need to borrow (you’re planning a big remodeling project, say), a home equity loan might not be the best choice. Because home equity loans only offer a fixed lump sum, you run the risk of borrowing too little. On the flip side, you might borrow too much, which you’ll still need to repay with interest (though you might be able to settle the debt early, if that’s the case).
Lengthy, costly application: Applying for a home equity loan is akin to applying for a mortgage; though somewhat simpler, it often means lots of paperwork, a long process and closing costs.
What’s the difference between a home equity loan and a HELOC?
A HELOC – short for home equity line of credit – is also secured by the equity in your home and has similar requirements to a home equity loan, it operates a bit differently. With a HELOC, you can borrow money on an as-needed basis, up to a set limit, typically over a 10-year draw period. During that time, you’ll make interest-only payments on what you borrow. This means that your payments may be smaller than a home equity loan, which includes both interest and principal. When the draw period on the HELOC ends, you’ll repay what you borrowed and any interest, usually over a repayment term of up to 20 years. Unlike home equity loans, HELOCs have variable interest rates, which means your monthly payments can change.
Other home equity loan alternatives
A home equity loan and a HELOC aren’t your only options for borrowing against your equity. Some other alternatives include:
Shared equity agreements: Investment companies like Unlock and Hometap offer shared equity agreements, which let homeowners access cash now in exchange for a portion of the home’s value in the future. These arrangements vary, but they all have one upside: You don’t have to make monthly payments, because the money is technically not a loan, but an investment — funds in exchange for a share in your home. However, they all have the same downside: You’re going to make a big payment eventually, and it will likely wind up coming out of the proceeds when you sell the home.
Cash-out refinance: Another option to convert a portion of your home equity into ready money is through a cash-out refi. Unlike a home equity loan, a cash-out refi replaces your current mortgage with a new one for a higher amount, with you taking the difference between the outstanding balance and the new balance in cash. You’ll need to think carefully about a cash-out refi based on the rate attached to your current mortgage. If you managed to lock in a super-low rate during the pandemic, a cash-out refinance is almost certain to lock you into a significantly higher rate.
Personal loans: Personal loans can be a cost-effective route if your credit score is in 760-and-above territory. These are unsecured loans – meaning you won’t have to put your house on the line. However, borrowing limits tend to be lower, and the repayment period will be shorter than most home equity loans’.
Home equity loans FAQ
Taking on any form of debt, including a home equity loan, has an impact on your credit score. After you close on a home equity loan, your score might decrease temporarily. Over time, as you continue to make timely payments on the loan, you might see your score improve, as well.
It varies by lender, but most home equity loans come with repayment periods between five years and 30 years. A longer loan term means you’ll get more affordable monthly payments. That said, you’ll also pay far more in interest. If you can afford the higher monthly payments, selecting a shorter term maximizes overall cost. The ideal is to find a compromise between the two: the maximum manageable payments and the shortest loan term.
Fees for home equity loans vary by lender, which makes it very important to compare offers. Some home equity lenders require you to pay an origination fee and other closing costs, typically between 2 percent and 5 percent of the loan balance. You might also pay a home appraisal fee. Once the loan proceeds are disbursed to you, late fees could apply if you remit payment after the monthly due date or grace period (if applicable).
There are no restrictions on how you purpose your home equity loan. The most common uses include debt consolidation for high-interest credit card balances or other loans; home repairs or upgrades; higher education expenses and medical debts. Some choose to use the funds to start a business, purchase an investment property or cover another major purchase.
Looking for the best jobs for single moms? Being a single mom can be hard because you have to manage both your job and taking care of your kids. There are not many hours in a day, so it’s probably important to you to find a job that pays you a good income and lets…
Looking for the best jobs for single moms?
Being a single mom can be hard because you have to manage both your job and taking care of your kids. There are not many hours in a day, so it’s probably important to you to find a job that pays you a good income and lets you take care of your children.
The good news is that nowadays, there are many stay at home jobs for moms. This means you don’t have to follow a strict 9-to-5 schedule, making it easier to balance work and family. There are also many in-person jobs that allow you to have a better schedule to match your children’s schedule (such as when they are in school!).
Whatever you may be looking for, there are many flexible jobs for single moms. Continue reading below to learn more!
Best Jobs for Single Moms
Below is a quick summary of some of the best jobs for single moms.
Bookkeeper – You can organize the finances for businesses and have flexible working hours. With quick training, entry-level bookkeeping jobs might start at around $20 per hour, but with experience, you could earn a lot more.
Blogger – Bloggers get to work from home and make their own schedule, which is great for anyone, including single moms.
Teacher – Teaching probably aligns well with your child’s school schedule. Whether full-time, substitute, or part-time, teaching can be a good choice.
Virtual Assistant – This job involves helping businesses with tasks online, and you can typically make your own schedule.
Childcare provider – If you enjoy taking care of children, providing childcare for others while watching your own can, at the same time, be a way to earn money.
Below, you can learn about each of these, as well as many more of the best jobs for single moms.
1. Blogger
Blogging is one of the best jobs for single moms, and this is because you can work from home, make your own flexible schedule, and be your own boss; these are all reasons why I think it’s one of the best jobs for single moms who stay at home.
Plus, to start, you don’t need a lot of stuff – just a computer and internet.
I do this myself while taking care of my daughter, Marlowe. Blogging lets me travel whenever I want, make my own work schedule, earn good money, write about topics I like, and I really enjoy having a blogging business.
I started Making Sense of Cents in 2011, and since then, I’ve earned over $5,000,000 with my blog. When I began, I didn’t know it would become one of the best jobs for stay-at-home moms. Now, blogging lets me have a flexible schedule and spend lots of time with my daughter. It’s been a great way to balance work and family for me.
You can learn how to start a blog with my free How To Start a Blog Course (sign up by clicking here).
In this free course, you will learn:
Why you should start a blog today
How to decide what you should write about
How to create a blog (this will go over the actual step-by-step process)
How to make income from your blog
How to get people to read your blog
And more!
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Want to see how I built a $5,000,000 blog?
In this free course, I show you how to create a blog, from the technical side to earning your first income and attracting readers.
2. Day care (and bring your kid)
Finding a job that lets you bring your child along can save you childcare costs and watching other people’s kids is one way to do it.
You could start your own day care or find a job at a day care.
If you want to start a home day care, then you will want to check your state’s rules for home day cares, such as if you need a license. You’ll also need a safe space for children, as well as toys and games.
You could also try to find a job at a day care in your local area. Many day care centers allow you to bring your child, or they will give you a discounted rate to have your child attend the day care as well while you work.
Another option is to become a nanny or babysitter for a family that allows you to have your child there as well.
Starting a day care, working in one, or becoming a nanny/babysitter can be a win-win. You earn money and don’t worry about finding someone to watch your kid. Plus, your child gets to play and learn with other children.
Recommended reading: How to Make Money on Maternity Leave: 27 Real Ways
3. Sell printables
Selling printables is a great work-from-home business idea for single moms. This is because you can do this while your kids are sleeping or at school and earn passive income too!
Printables are digital files that people buy, download, and print themselves. These can include planners, calendars, wall art, grocery shopping checklists, weekly meal plans that someone puts on their fridge, and educational worksheets for kids.
You can sell your printables on websites like Etsy. This is a way to make money from home because you only need to make one digital file for each product, and you can sell it many times. You don’t have to print or send anything to your customers. You make the digital file; your customer buys it, downloads it, and takes care of the rest.
I recommend reading about this further at How I Make Money Selling Printables On Etsy to learn more about one of the best jobs for stay-at-home moms.
Do you want to make money selling printables online? This free training will give you great ideas on what you can sell, how to get started, the costs, and how to make sales.
4. Virtual assistant
As a single mom, you may be looking for a job that fits into your schedule. Working as a virtual assistant (VA) could be your answer, as you get to work from home and choose hours that work for you.
I’ve worked as a virtual assistant before, and I also have virtual assistants who help me with my business. Many parents have told me that a virtual assistant job is one of the best jobs for stay-at-home moms because it’s very flexible, and I agree!
A VA is someone who works from home as an assistant for someone else. Nowadays, many businesses can be operated from home, so it makes sense that an assistant can also work from home.
A virtual assistant can do tasks like managing social media accounts, formatting and editing content, scheduling appointments, handling travel plans, managing emails, and overseeing Facebook groups, among other things.
You can learn more at How Kayla Earns $10,000 Each Month From Home as a Virtual Assistant.
5. Freelance writer
If you’re a single mom looking for a job you can do from home, freelance writing might be a good fit for you. It’s a job where you write articles, blog posts, and sometimes even books for money. You don’t have to work in an office; you can write from anywhere, even your own kitchen table.
I have been a freelance writer for years, and it can be a great career choice for someone who wants to work from home.
When you’re just starting as a freelance writer, you might begin by writing articles that pay around $50 each or even more. However, the amount of money you can earn can vary a lot. You may be able to earn around $50,000 a year, and I know several freelance writers who are moms who make over $200,000 per year.
Many people are searching for freelance writers, and this job has a lot of opportunities for growth. It could be a great career to begin with.
Learn more at 14 Places To Find Freelance Writing Jobs – (Start With No Experience!).
6. Book author
If you love telling stories or sharing your knowledge, writing books could be an ideal job for you as a single mom. You get to create your own schedule and work from anywhere, even your home. Writing can be done at times that fit your schedule best, such as when your kids are at school or asleep.
For publishing your book, there are two options:
Traditional Publishing – You submit your manuscript to publishers. If a publisher likes your work, they will print, distribute, and market your book for you. In return, you’ll earn royalties from sales.
Self-Publishing – Platforms like Amazon Kindle Direct Publishing allow you to publish your book yourself. You control every aspect and get a higher percentage of the sales, but you also handle marketing and distribution.
The amount of money that you can make as a book author can vary by a lot. As a first-time author, getting published can be challenging, and earning substantial income takes time. If you self-publish and your book becomes popular, you could make a significant amount. But, this isn’t guaranteed.
Recommended reading: How Alyssa is making $200 a DAY in book sales passively
7. Graphic designer
Graphic design is a creative job that involves making artwork and visual designs. You might create designs for websites (like logos), advertisements, or printed materials like brochures and magazines.
Your work helps companies communicate with their customers through eye-catching and effective visuals.
This can be a great job for single mothers, as you may be able to find a work-from-home job as a graphic designer, or even start your own business where you can make your own flexible schedule.
Recommended reading: How To Make Money As A Digital Designer
8. Social media manager
Becoming a social media manager can be a great fit for single moms looking for remote work jobs.
Social media managers are in charge of social media accounts for businesses or people. Their job is to post on social media, reply to comments, and keep everyone interested.
This can include TikTok, Instagram, Pinterest, Facebook, X (formally known as Twitter), and more.
I have been a social media manager for companies, and it’s a great job that allows you to have a flexible schedule. That means you can work when it suits you – such as when the kids are at school or asleep.
9. Real estate agent
If you’re a single mom looking to balance work and family, becoming a real estate agent might be a great fit. As a real estate agent, you help people buy and sell homes.
To be a real estate agent, you just need a high school diploma and a license.
In 2021, the average pay for this job was $23.45 per hour, which is about $48,770 per year. But, there are many real estate agents who earn much more than this.
10. Proofreader
Proofreaders read documents and check for spelling, grammar, and punctuation errors, and they make sure everything is perfect before it gets printed or published online. They review books, articles, blog posts, social media content, newsletters, advertisements, and more.
If you want flexible work hours, proofreading is a good choice. Depending on your experience and the job’s complexity, you can earn between $20 and $50 per hour and more.
As a single mom, this job lets you balance work with looking after your kids. You can usually set your own schedule and work from home, which can make life a little easier.
You can read more at How To Become A Proofreader And Work From Anywhere.
There is also a FREE 76-minute workshop where you will learn more about how to become a proofreader with Proofread Anywhere. You can sign up for free here.
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This free 76-minute workshop answers all of the most common questions about how to become a proofreader, and even talks about the 5 signs that proofreading could be a perfect fit for you.
11. Bookkeeper
If you’re a single mom, becoming a bookkeeper might be a good option for you. Bookkeepers manage money records for businesses by keeping track of all the money that comes in and goes out.
If you work as an online bookkeeper, you could make about $40,000 or more per year. Typically, this involves managing finances for around 12 to 16 clients.
Being an online bookkeeper is great because you don’t need to be an accountant or have any prior experience. Also, virtual bookkeeping is a service that many people are looking for, so there’s a demand for it.
Recommended reading: Online Bookkeeping Jobs: Learn How To Get Started Today
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This free training will teach you what you need to know to become a virtual bookkeeper and make money from home.
12. Transcriptionist
As a transcriptionist, your job is to listen to audio or video files and type out what you hear into text. This is a task that you can do from home, making it a good option if you’re a single mom looking for flexible work.
One of the biggest benefits of this job is flexibility. You can usually choose when and how much you want to work (such as when your kids are sleeping or when they are at school). This can make balancing work and family much easier.
You need to be able to type quickly and accurately and attention to detail is important because you need to catch every single word.
Recommended reading: 18 Best Online Transcription Jobs For Beginners To Make $2,000 Monthly
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In this free training, you will learn what transcription is, why it’s a highly in-demand skill, who hires transcriptionists, how to become a transcriptionist, and more.
13. Customer service representative
Customer service representatives help people by answering questions and solving problems on the phone or online, which means they can sometimes work from home.
On average, customer service representatives earn around $35,868 a year as an average salary. This will change depending on where you work and how much experience you have.
Some large companies like Apple, Progressive, U.S. Bank, American Express, and U-Haul hire customer service representatives who can work from home. This means you can do the job from the comfort of your own house.
14. Data entry clerk
Data entry clerks enter information into databases or spreadsheets. They type things like numbers and names into computers to keep everything organized and make sure records are correct.
Jobs in data entry usually pay about $15 to $20 per hour.
Recommended reading: 15 Places To Find Data Entry Jobs From Home
15. Dog walker or pet sitter
If you’re a single mom looking for a job that fits around your schedule, you may want to look into becoming a dog walker or pet sitter. This type of job lets you choose when you work, which is great for making sure you have time for your kids.
As a dog walker, you walk dogs for people who are busy or away from home. You might take them around the neighborhood or to a park. If you’re a pet sitter, you take care of pets while their owners are out of town or at work.
The money you make can vary. Some jobs might pay you each day, like $15 to $25 an hour or a flat rate per day like $75. How much you make could depend on how many pets you care for and how long you spend with them.
Rover is a great company that you can sign up with in order to become a dog walker and pet sitter.
16. BabyQuip
If you’re a mom looking for a flexible side hustle, BabyQuip might be worth looking into. It’s a service where you can rent out baby gear like strollers and car seats to traveling parents – starting is simple: apply online, and BabyQuip will guide you through the process.
As a mom after all, you probably already have a lot of baby gear that you can rent out to make money with.
With BabyQuip, you make money by renting out items you already own or plan to invest in for rentals. Because parents travel, the demand for clean and safe baby gear is always there.
People using BabyQuip can make about $1,000 a month on average, and some even earn more than $10,000 each month.
On BabyQuip, you can rent items like cribs, strollers, car seats, high chairs, toys, bouncers, books, hiking packs, and many other things.
17. Teacher
As a single mom, teaching can be a great career for you. As a teacher, you typically work while your children are in school as well, after all.
Most teaching jobs follow a traditional school year calendar. This means you usually have summers off, along with school holidays, which can help you spend time with your kids.
18. Doula
If you’re a single mom looking for a job, you may want to become a doula. A doula supports women during childbirth, but your work can also extend to helping moms after the baby is born.
They are there to give comfort, encouragement, and knowledge during the pregnancy journey, labor, and the postpartum period.
19. Tutor
If you’re looking for part-time jobs for single moms, then tutoring may be an option to look into.
If you’re a single mom who knows a lot about a specific subject like math, science, or a language, becoming an online tutor could be a smart choice. You can schedule sessions around your life and help students learn. You pick when you work, which is perfect when you have kids at home. You might teach early mornings, afternoons, or even nights.
You will need a quiet place to work, a computer, and a good internet connection.
Income as a tutor ranges, and you may be able to earn $20+ an hour. And, if you specialize in something more advanced, like SAT prep or college courses, you could make more, even up to $50 per hour or more.
20. Photographer
As a single mom, becoming a photographer can be a rewarding job choice for you. With a camera and some practice, you can start taking photos that people will enjoy.
To begin, you need a decent camera. Don’t worry, it doesn’t have to be the most expensive one. You also need to learn about lighting and how to frame a good picture. There are lots of free tutorials online, such as on YouTube, if you want to learn more.
One of the best parts about photography is that you can make your own schedule. You decide when to book photo shoots, which can be great for balancing time with your kids. It’s possible to do photo shoots on weekends or during special events like weddings.
You can earn money by selling your photos online or by working with clients directly. Graduations, weddings, family portraits, and even pet photos can be great opportunities. Pricing varies depending on the job, but as you gain experience, you can charge more for your work.
As you grow, you can invest in better equipment and editing software to enhance the quality of your photos. This helps you stand out and can lead to more jobs and higher pay.
I know many moms who are successful photographers, and they love having a photography business.
Recommended reading: 18 Ways You Can Get Paid To Take Pictures
21. Instacart shopper
If you’re a single mom looking for a job that fits around your schedule, becoming an Instacart shopper might be a good choice. Instacart is a service that lets people order groceries online, and shoppers like you do the shopping and deliver the orders to their homes.
When you’re an Instacart shopper, you can set your own hours. This means you can work when it’s best for you, like when your kids are at school or sleeping. As a shopper, you get a payment card from Instacart to buy the groceries at the store.
Shoppers usually earn about $11 to $20 per hour. It’s important to remember that as an independent contractor, you will have extra costs like gas and vehicle maintenance that you need to think about when figuring out your earnings.
You can learn more at Instacart Shopper Review: How much do Instacart Shoppers earn?
22. Paralegal
As a single mom, you might find the role of a paralegal interesting. It’s a job where you work in a law firm or legal department, helping lawyers by preparing legal documents and doing research.
Your typical work hours are most likely Monday to Friday, fitting well with a school-week schedule.
Paralegals earn around $30,000 to $35,000 a year.
23. Dental assistant
As a single mom, if you’re looking for a job that lets you help people and have regular hours, you might like being a dental assistant. In this job, you work in a dentist’s office and help the dentist with patients.
Your tasks could include getting the tools ready, making sure patients are comfortable, and teaching them how to care for their teeth.
Your week would be busy, but you usually wouldn’t have to work nights or weekends. This is great because it matches up with your kids’ school schedule.
24. Travel agent
As a single mom, you may find that being a travel agent is a job that fits well with your life. It’s a job where you get to plan and book trips for others. You could work from home or an office.
Travel agents plan vacations, business trips, and getaways for clients and they find the best deals on flights, hotels, and fun activities.
The money you earn can vary because some agents get paid hourly and others get a commission, which is a part of the trip cost.
25. Nurse
As a single mom, you might worry about balancing work with taking care of your kids. As a nurse, there are jobs that can fit your life.
Some examples include:
School nurse – You can work the same hours your kids are in school. You’ll care for sick children, keep track of health records, and help with health checks.
Doctor’s office nurse – Working here can be less stressful. Usually, the hours are regular, Monday to Friday, so you can be home with your kids in the evenings and on weekends.
Home health care nurse – You’ll visit patients in their homes, which can give you a flexible schedule.
Public health clinics – These places look after the community’s health. Hours can be more regular, meaning you won’t have to do lots of night shifts.
Nurse educator – If you love teaching, this lets you work in a classroom instead of a hospital. You’ll have a steady schedule, perfect for family time.
26. Speech pathologist
A speech pathologist helps people with speech and language issues. You would work to improve their communication skills, which can be very rewarding.
You need a master’s degree in speech-language pathology and certifications vary by state.
Your work may take place in schools, hospitals, or private clinics. Some speech pathologists work from home providing virtual sessions.
27. Sleep consultant
Sleep is really important for the growth and well-being of babies, and it’s important for parents too. But sometimes, parents find it hard to make sure their child gets the sleep they need.
Pediatric sleep consultants are very helpful in solving children’s sleep problems, making it easier for families to have peaceful nights. If you really enjoy working with kids and want to make a positive difference in their lives, becoming a sleep coach could be a great career option.
I have personally learned from sleep consultants in the past, and I know many others who have hired a sleep consultant as well. These are typically moms who have firsthand experience with improving a baby’s sleep.
Learn more at How To Become A Sleep Consultant And Make $10,000 Each Month.
28. Run a dog treat bakery
If you enjoy cooking, starting a home bakery could be a way to make money from home. It allows you to use your cooking skills to create dog treats and earn some income.
You can make dog treats, cupcakes, cookies, cakes, and more.
Starting a dog treat bakery business could potentially help you earn an extra $500 to $1,000 a month or even more. It’s a niche small business idea that taps into the love people have for their pets.
I also recommend reading How I Earned Up to $4,000 Per Month Baking Dog Treats (With Zero Baking Experience!).
Frequently Asked Questions
Below are answers to common questions about how to find jobs for single moms.
What should a single mom do to handle financial stress?
I get it – as a single mom, you may have a lot of financial stress. It is hard to be a single mom and manage everything all on your own after all. To manage financial stress, I recommend trying to find jobs that pay well but also have flexible hours or work hours that match up with your children’s school schedule. Jobs that allow you to work remotely can also help lower your childcare expenses as you can work from home.
How to work as a single mom without help or childcare?
If you don’t have help or childcare, then you may want to work during hours when your kids are at school or asleep. This may include looking for jobs or employers who understand your situation and have flexible schedules or the ability to work from home.
What are the best work from home jobs for single moms?
I think one of the best ways for a single mom to make money is to work from home. This is because you may be able to make your own schedule, and you may be able to find a job that allows you to take care of your kids at the same time.
The best work-from-home jobs include jobs like virtual assistants, freelance writers, and bloggers.
What are jobs for single moms without a degree?
Jobs for single moms without a degree include administrative support, customer service positions, and sales roles as these jobs usually give on-the-job training.
How can a single mom go back to college and what degrees are best?
You can go back to college by looking for online degree programs, or classes when your children are at school, that fit your schedule. Popular degrees that balance well with being a single mom could be in fields like education, business, or healthcare, which have the potential for career growth.
Best Jobs for Single Moms – Summary
I hope you enjoyed this article on how to find the best jobs for single moms.
Whether you are looking for full-time or part-time jobs for single moms, there are many options that may fit what you need.
As you probably noticed above, jobs for single moms vary and include different types of work. Some jobs are creative, like writing or graphic design, while others are more regular, such as customer service or bookkeeping.
If you enjoy telling stories and writing, you could be a blogger or a freelance writer. If you’re good with organizing and numbers, you might like being a virtual assistant or a bookkeeper.
If you prefer doing your own thing, you could start a home day care or sell printables online.
As you can see, this is a long list of the best jobs for single mothers! There are many different job ideas that you could try that have a good work-life balance.
What do you think are the best jobs for single parents?
Pet insurance can be a literal lifesaver if your furry friend needs emergency surgery or expensive medical treatment, but the premiums can also put a dent in your budget. NerdWallet gathered quotes from 15 popular insurers and crunched the numbers to help you find the best cheap pet insurance.
We shopped on the insurers’ websites for accident and illness plans in five cities around the U.S. Sample pets were a medium-sized, mixed-breed dog and a domestic shorthair (mixed-breed) cat at ages 2 and 8. Each plan had a $250 deductible, $5,000 annual coverage limit and 80% reimbursement rate. Read our full methodology.
Keep in mind that the affordability of your own rates will vary based on where you live, how much coverage you want, and your pet’s breed and age. Companies that offered the cheapest rates in our tests may not be the best fit for you.
The best cheap pet insurance companies
Below are the five companies we recommend for affordable pet insurance. Click on the company name or keep scrolling for more details on each.
Figo: Cheapest for cats.
ASPCA: Best for younger pets.
AKC: Best for pets with pre-existing conditions.
Lemonade: Cheapest for dogs
Lemonade
Seamless online experience and quick claims, but limited policy options.
Pay vet directly
No
Scope of coverage
Average
Ability to customize plan
Average
Lemonade
Seamless online experience and quick claims, but limited policy options.
Pay vet directly
No
Scope of coverage
Average
Ability to customize plan
Average
Why we picked it: Lemonade offered some of the most consistently affordable rates for dog insurance in our tests. On top of low premiums, the company also has discounts for paying your bill annually rather than monthly and for insuring more than one pet. If you have another Lemonade policy (such as homeowners, renters or life insurance), you can save even more.
Lemonade stands out for its unique “Giveback” program, which donates a portion of company profits to charities chosen by policyholders. It also shines when it comes to claim processing. After you file your claim through the app, the company uses artificial intelligence to review and pay some claims right away. (Human adjusters review the rest.)
Average of sample monthly rates for dogs: $49.
Average of sample monthly rates for cats: $28.
Figo: Cheapest for cats
Figo
Extensive coverage, a variety of deductibles to choose from and generous reimbursement options.
Pay vet directly
No
Scope of coverage
Excellent
Ability to customize plan
Excellent
Figo
Extensive coverage, a variety of deductibles to choose from and generous reimbursement options.
Pay vet directly
No
Scope of coverage
Excellent
Ability to customize plan
Excellent
Why we picked it: Figo was the most affordable option for many of our sample cats, and its overall average cost was the lowest of all the companies we tested. Figo also offers discounts for insuring multiple pets or serving in the military.
One unique feature from Figo is a 100% reimbursement option. If you choose this level of coverage, the company will reimburse all your vet bills once you’ve met your annual deductible. (Most pet insurers offer reimbursement options from 70% to 90%.) We also like Figo’s Pet Cloud app, which can store your pet’s digital medical records and has a 24/7 vet telehealth line.
Average of sample monthly rates for dogs: $54.
Average of sample monthly rates for cats: $23.
MetLife: Best for older pets
MetLife
Customizable plans for dogs, cats and even other animals in some states.
Pay vet directly
No
Scope of coverage
Excellent
Ability to customize plan
Excellent
MetLife
Customizable plans for dogs, cats and even other animals in some states.
Pay vet directly
No
Scope of coverage
Excellent
Ability to customize plan
Excellent
Why we picked it: With affordable rates for older pets in our tests and no maximum age limit for enrollment, MetLife is a good bet for animals who’ve left the puppy or kitten stage far behind. Depending on where you live, MetLife may offer discounts for active-duty military, veterans, first responders, health care workers or people who work in animal care. You can also save money in the first year of your policy by buying your plan online.
MetLife’s plans cover treatment for arthritis, diabetes, periodontal disease and other ailments that may crop up for older pets. The company offers a wide range of deductible options to help you customize your policy and price.
Average of sample monthly rates for dogs: $49.
Average of sample monthly rates for cats: $29.
ASPCA: Best for younger pets
ASPCA
Generous coverage and multiple plan options, including an accident-only policy.
Pay vet directly
No
Scope of coverage
Excellent
Ability to customize plan
Average
ASPCA
Generous coverage and multiple plan options, including an accident-only policy.
Pay vet directly
No
Scope of coverage
Excellent
Ability to customize plan
Average
Why we picked it: ASPCA, which had competitive rates for the 2-year-old dogs and cats in our tests, will cover puppies and kittens over 8 weeks old. Insuring multiple pets can get you a 10% discount.
ASPCA offers some of the most comprehensive plans in the industry, with coverage included for dental diseases, behavioral issues, alternative therapies, prescription food and even microchip implantation. If you want your policy to help pay for your furry new friend’s spay or neuter surgery, you can add the Prime preventive care package.
Average of sample monthly rates for dogs: $61.
Average of sample monthly rates for cats: $29.
AKC: Best for pets with pre-existing conditions
AKC
Lots of ways to customize your coverage, but the basic plan lacks benefits many other companies include.
Pay vet directly
No
Scope of coverage
Good
Ability to customize plan
Excellent
AKC
Lots of ways to customize your coverage, but the basic plan lacks benefits many other companies include.
Pay vet directly
No
Scope of coverage
Good
Ability to customize plan
Excellent
Why we picked it: AKC wasn’t the cheapest option in our tests, but in many states it offers a perk that’s almost impossible to find at any price: coverage for pre-existing conditions. While many companies will pay to treat curable issues that have been symptom-free for six months or a year, they generally won’t cover chronic, incurable conditions that developed before you bought your pet’s policy. So if you enroll a pup with diabetes or a cat with kidney disease, most companies won’t cover treatment for these issues.
AKC is the exception. Once your pet has had a plan for 365 consecutive days, the company may cover its pre-existing conditions. (This coverage isn’t available in all states.) Other bonuses include a multipet discount and a 24/7 vet helpline.
Average of sample monthly rates for dogs: $60.
Average of sample monthly rates for cats: $38.
Other cheap pet insurance companies
Not sure if the companies above are right for you? See sample rates for more cheap pet insurance companies below.
Average of sample monthly rates for dogs
Average of sample monthly rates for cats
What determines your pet insurance cost?
Each company has its own formula for setting prices, but the following are some of the main factors that will likely influence how much you pay for pet insurance.
Where you live. If you’re in an area with a high cost of living, vet care may be expensive, too — and your premium will go up accordingly.
Your pet’s age. Just like humans, pets tend to develop more health issues as they age. Because older pets are more likely to need veterinary care, their pet insurance will generally cost more than it would for a puppy or kitten.
Your pet’s species and breed. Dogs tend to be more expensive to insure than cats, and certain breeds cost more than others. That’s because some breeds are more susceptible to health conditions such as trouble breathing, joint problems or heart issues.
The coverage you choose. Expect higher prices for more comprehensive plans offering things like unlimited annual payouts and 90% reimbursement for vet expenses. Adding wellness coverage to pay for annual checkups and vaccinations can also run up your costs. Some insurers charge extra to cover certain expenses such as exam fees or physical therapy.
How to find cheap pet insurance
The following tips can help you get the best possible rate for your pet insurance plan.
Shop around. We recommend getting quotes from at least three companies. Keep in mind that the lowest price may not offer the best value if it comes with a higher deductible or less coverage. (A deductible is the amount you need to pay before your insurer starts reimbursing you.)
Customize your coverage. Many insurers let you tweak your price by changing your deductible, adding or reducing coverage, or opting for a different reimbursement rate. For example, you can typically lower your premium if you choose to be reimbursed for only 70% of your vet expenses rather than 80% or 90%. You could also buy an accident-only policy, which will cover injuries like broken bones or snake bites but not illnesses like cancer.
Just be sure you’re comfortable with the tradeoffs you’re making to get a lower premium. The plan may be cheaper, but you’ll be on the hook for more of your pet’s vet bills.
Ask about discounts. Some companies offer savings if you insure more than one animal, serve in the military or buy multiple insurance policies (such as pet and homeowners insurance). You may also be able to save a few bucks by paying your premium in full once a year instead of in monthly installments.
Look for employer benefits. Some companies offer pet insurance at a discounted rate to their employees. Before you choose this option, however, check with the insurer to make sure you can maintain your pet’s coverage even if you leave your current job.
How to compare pet insurance plans
Aside from price, pet insurance plans vary in what they cover and how generously they’ll reimburse your vet bills. Here are a few key things to check before you commit to a pet insurance plan.
What’s covered — and what’s not
Most accident and illness plans cover things like cancer treatments or surgery if your pet gets hurt. But there are types of coverage you can’t always count on.
Say your pet develops periodontal disease and needs to have a few teeth pulled. Some plans will cover this expense; others won’t. Still others might cover it only if you’ve bought optional dental illness coverage. Learn more about pet dental insurance.
Plans may also vary in their coverage of prescription food and supplements, treatment for behavioral issues and rehabilitative therapies.
Finally, check whether your plan will cover vet exam fees. If you bring your pet in for a sick visit, some pet insurers will pay for medication and other treatment but won’t reimburse you for the exam fee.
Reimbursement
One of the most important things to know about a plan is how it will reimburse you for your vet expenses. A handful of companies can pay your vet directly, but in most cases you’ll need to settle the bill yourself and then file a claim for reimbursement.
Check how long it generally takes the companies you’re considering to process claims. Some do so in a matter of days, while others may take up to a month.
You’ll also want to make sure you’re comfortable with your plan’s coverage limit, deductible and reimbursement rate. These factors all work together to determine how much your plan will pay toward your vet expenses.
Say you have a $500 yearly deductible and $5,000 annual coverage limit with a reimbursement rate of 80%. If your dog needs a $2,000 surgery and you haven’t paid anything toward your deductible yet, your plan would cover $1,200. Here’s the math:
$2,000 – $500 deductible = $1,500.
80% reimbursement on the remaining $1,500 bill = $1,200.
You’d still have $3,800 left of your annual limit ($5,000 – $1,200) to spend on any other treatment your pet might need that year.
Waiting periods
There’s generally a waiting period between when you buy your policy and when your coverage begins. For instance, your pet’s illnesses might not be covered for the first 14 days. Some companies have extended waiting periods for certain issues such as knee injuries or hip dysplasia. Learn more about pet insurance waiting periods.
Reviews
NerdWallet has evaluated more than a dozen major pet insurance companies to help you compare your options. Read our pet insurance reviews to see our star ratings and get details about each insurer’s plans.
The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.
At the start of 2022, I panicked after realizing I was in my early thirties with only about $4,000 saved for retirement. Once the panic subsided, my solution was to use side hustles to fast-track my retirement savings. Within two years, I was able to use my freelance and 9-to-5 income to grow my retirement savings by over $100,000. Here are some strategies I used to achieve my goal.
1. Draft a retirement plan
Over the years, I hadn’t put much thought into when I wanted to retire or how much I would need. I got started by reading online articles and using a retirement calculator.
Drafting a retirement plan was a cathartic process — it challenged me to think about what lifestyle I want during retirement and how much that could cost. I landed around the $2 million mark, which was initially a shock to my nervous system because I only had around $4,000 saved. I arrived at this number by inputting my ideal retirement age, life expectancy, monthly contribution, monthly budget and other variables into a retirement calculator.
The retirement calculator also helped me break down how much I needed to save monthly to reach my lofty goal.
2. Create an investing strategy
Before hunting for freelance gigs, I wanted to make sure I had an investing strategy in place. It’s easy to spend freelance money before it hits your checking account; I would know because I’ve done it one too many times.
“As a side hustler, your go-to accounts for saving for retirement are the IRA, the Roth IRA, the SEP IRA and a solo 401(k),” says Alleson Tate, a certified financial planner and founder of Avere Wealth Management in Atlanta. These types of accounts can help maximize retirement and health care savings.
To hit my monthly savings goal, I planned to divide my side hustle income into five pots: my emergency savings fund within a high-yield savings account, my 401(k), an IRA, a health savings account and a standard brokerage account. I also planned to max out my allowable contributions to my 401(k), HSA and IRA as my income increased.
3. Budget
Eventually, I found multiple consistent freelance writing gigs by focusing on securing high-paying clients who would provide consistent work over an agreed period of time. I was a regular contributor for some online platforms and also had private clients to whom I provided articles. I used job boards, cold emails and tapped my network. Although most of my freelance income was consistent, some contracts didn’t get renewed. This meant I had to have a solid budget in place and revisit it regularly to stay on top of my saving goals.
Tate suggests using a 50/30/20 budgeting system to manage your side hustle income, which NerdWallet also recommends for primary income. With this method, 50% of take-home income goes to needs, 30% to wants and 20% to savings, debt and investments.
“Everyone’s percentages need to be adjusted according to their own lifestyle and financial priorities,” Tate says. “But that would be a really great starting place.”
I was frequently adjusting my budget allocations. Some months, I was investing too much and didn’t have enough in my emergency fund, while other times, I wasn’t leaving enough for bills. I went overboard with the leisure and self-care bucket a few times, and during months when I had less side income, I had to reduce my savings.
4. Plan for taxes
During my first year of aggressive side hustling, I wanted the instant gratification of seeing my retirement savings grow. I decided to prioritize saving and waited to pay Uncle Sam in one lump sum during tax season. Before making that decision, I should have read the IRS’ fine print about self-employment taxes. Reading that could’ve saved me the penalty I had to pay that year.
The self-employment tax rate is 15.3% for 2023 and 2024. To avoid an underpayment penalty, you’ll generally need to owe under $1,000 in taxes after minusing any withholdings and refundable tax credits. Or, you would need to have paid withholding and estimated tax of either 90% of taxes from the current year or 100% of taxes from the previous year. You can do this by paying the IRS estimated quarterly taxes or by withholding enough taxes from your W2 income.
To help calculate this, Abraham Ziadeh, a CPA and owner of a certified public accounting firm in Pembroke Pines, Florida, suggests using bookkeeping software, an accountant or a CPA.
I chose the W2 route and worked with a financial advisor to calculate how much I need to withhold to avoid another penalty.
I also decided to learn about ways to reduce my self-employment taxes. One strategy my tax advisor suggested was to change my business structure from a single member LLC to an S corporation. If you have consistent income and satisfy the requirements, incorporating your business could help you save on taxes, especially if you choose an S corporation structure, Ziadeh says.
Leveraging a self-employed retirement account was another way to reduce my tax bill. I went with a SEP IRA, since you can contribute a higher amount than you can with a Roth. Tate says SEP IRAs are her preferred accounts since they reduce your taxable income and have a relatively high contribution limit.
That said, it’s important to choose an account that works best for your financial situation.
This article was written by NerdWallet and was originally published by The Associated Press.
Commercial/Multifamily Mortgage Delinquency Rates MBA Research Mortgage Credit Availability Index Press Release Residential
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WASHINGTON, D.C. (January 16, 2024) — Delinquency rates for mortgages backed by commercial properties increased during the fourth quarter of 2023, according to the Mortgage Bankers Association’s (MBA) latest commercial real estate finance (CREF) Loan Performance Survey.
“Ongoing challenges in commercial real estate markets pushed the delinquency rate on CRE-backed loans higher in the final three months of 2023,” said Jamie Woodwell, MBA’s Head of Commercial Real Estate Research. “Delinquency rates jumped to 6.5 percent of balances for loans backed by office properties and to 6.1 percent for lodging-backed loans. Delinquencies for loans backed by retail properties remain elevated from the onset of the pandemic but were unchanged during the quarter. Delinquency rates for multifamily and industrial property loans both increased marginally but remain much lower.”
Woodwell continued, “Long-term interest rates have come down from their highs of last year, which should provide some relief to some loans, but many properties and loans still face higher rates, uncertainty about property values and – for some properties – changes in fundamentals. Each loan and property faces a different set of circumstances, which will come into play as the market works through loans that mature this year.”
The balance of commercial mortgages that are not current increased in December 2023 (compared to September 2023).
96.8% of outstanding loan balances were current or less than 30 days late at the end of the third quarter, down from 97.3% at the end of the third quarter of 2023.
2.3% were 90+ days delinquent or in REO, up from 2.2% the previous quarter.
0.3% were 60-90 days delinquent, up from 0.2% the previous quarter.
0.6% were 30-60 days delinquent, up from 0.3%.
Loans backed by office properties drove the increase.
6.5% of the balance of office property loan balances were 30 days or more days delinquent, up from 5.1% at the end of last quarter.
6.1% of the balance of lodging loans were delinquent, up from 4.9%.
5.0% of retail balances were delinquent, flat from the previous quarter.
1.2% of multifamily balances were delinquent, up from 0.9%.
0.9% of the balance of industrial property loans were delinquent, up from 0.6%.
Among capital sources, CMBS loan delinquency rates saw the highest levels.
5.1% of CMBS loan balances were 30 days or more delinquent, up from 4.4% last quarter.
Non-current rates for other capital sources remained more moderate.
0.9% of FHA multifamily and health care loan balances were 30 days or more delinquent, up from 0.8%.
0.9% of life company loan balances were delinquent, up from 0.7%.
0.5% of GSE loan balances were delinquent, up from 0.4%.
MBA’s CREF Loan Performance survey collected information on commercial and multifamily mortgage portfolios as of December 28, 2023. This month’s results build on similar surveys conducted since April 2020. Participants reported on $2.7 trillion of loans in December 2023, representing 58 percent of the total $4.6 trillion in commercial and multifamily mortgage debt outstanding (MDO).
Philadelphia is a modern, glittering, cosmopolitan city on the east coast. Settled between massive New York and powerful Washington, D.C., Philly is a keystone of the Northeast Corridor as its state’s nickname suggests.
So as a representative major northeastern city, you would expect it as an expensive place to live. Well, not so fast. While Philadelphia stands as the nation’s sixth-biggest city by population, it’s just the 41st most expensive city in the U.S. among the top 270 largest. The cost of living in Philadelphia is pretty affordable for all you get. In fact, the city’s COL Index is a realistic 111.7, meaning it’s just 11.7 percent more expensive than the national average.
The cost of living in Philadelphia involves a number of expense factors. These include budget items such as housing, utilities, transportation, food and more.
The individual indexes range from nearly 20 percent over the national average for groceries to just 0.4 percent for health care. But regardless of category, including average rent in Philadelphia, the City of Brotherly Love is an affordable place to live.
Housing costs in Philadelphia
With about 30 percent of a household budget going towards housing, paying for where you live will be your single highest expense no matter where that is. But how is the affordability of the literal cost of living in Philadelphia? The answer is simple — not bad.
Despite its size as the sixth most populous city in America, housing in Philadelphia is 16.8 percent more expensive than average.
In fact, the cost of living in Philadelphia for housing is only the 46th most expensive in the nation. That makes it cheaper to live than such cities as Baltimore, Stockton, Flagstaff, Denver and Portland, Maine. Compare that to New York City. Manhattan is just 70 miles from Center City, but its Housing Index is a whopping 442.3.
The average rent in Philadelphia for a one-bedroom apartment is $2,142 a month. That’s just over $500 a month above the national average of about $1,600. The cost of that average Philly one-bedroom rose just 2.52 percent from the same period last year.
Philadelphia’s least and most expensive neighborhoods
Considering there are over 300,000 rental units in Philadelphia, the average one-bedroom figure varies widely depending on where in the city you wish to live. The top four least expensive neighborhoods in Philly sit in Near Northeast Philadelphia.
Melrose Park Garden, Pennypack Woods, East Oak Lane and Burholme all rent one-bedrooms for under $1,175 on average, with Melrose Park Garden the only district in the city under a grand a month. East Falls, a popular residential neighborhood for young professionals just south of Manayunk, is the fifth least expensive at $1,226.
On the flip side, the majority of the most expensive neighborhoods surround the city’s downtown. Washington Square West, Logan Square, Avenue of the Arts South and greater Center City itself all rent a lone bedroom for over $2,300 a month.
Washington Square West, home of the Gayborhood district, is the only region in town where rents top $3,000 monthly. Graduate Hospital, just across Broad Street, saw the highest year-to-year increase in the city at nearly 55 percent.
Home values in Philadelphia
If your life path has moved you from renting to homeownership, Philadelphia is an affordable place to buy as well. The average home — a new construction house with 2,400 square feet of living area for the purposes of this survey — is priced at $426,000.
While that is $115,500 above the nationwide average, Philly ranks an impressive 50th among cities with the most expensive new homes.
Mortgage rates, which by their nature fluctuate wildly, tend to hover around 3 percent.
Food costs in Philadelphia
Compared to other large cities, the price of food in Philadelphia is reasonable but not cheap. Philly’s Food Index is just under 20 percent above the national average. The city falls 16th among all cities, cheaper than some smaller locales like Seattle, Wilmington and suburban DC.
If you know anything about Philadelphians, they are big fans of party foods, backyard barbecues and sandwiches (particularly local faves hoagies, roast pork and cheesesteaks). And as incredible as the restaurant scene is in Philly, locals love to eat at home both in the dining room and on the patio. That means residents buy a lot of family and snack food.
Unfortunately, several of these common grocery items are pricey. For example, the city is among the top five most expensive for popular party items including potato chips, pork sausage and Coca-Cola, and a loaf of whole wheat bread ranks eleventh.
Not only is Philadelphia high nationally, but it’s unsurprisingly more expensive for food than other major cities in Pennsylvania.
For nearly every food item surveyed, Philadelphia is priciest compared to Pittsburgh, Allentown, Scranton and Wilkes-Barre. For example, frozen meal prices are over 30 percent higher than the average of all of the state’s population centers. A dozen eggs are nearly 30 percent higher as well and a head of lettuce is a 14.5 percent increase.
Looking for grocery bargains? They do exist. Shampoo is 5.6 percent cheaper than the state average. And both a bag of potatoes and can of peaches are 3 percent under, with the latter the cheapest in the state. While a bottle of table wine is steep at $12.11, ranked 14th and over $3 above the national average, beer is cheap.
In the town known for the “Citywide Special,” a six-pack runs 58 cents below the national average — the 64th cheapest city for beer in the U.S.
Dining out in Philadelphia
But not all food fun in Philly comes from the kitchen. Philadelphia is known as one of America’s top restaurant cities. No wonder, considering it’s home to the nation’s best pizza, best coffee shop, best chef and America’s best restaurant.
Philly folks love dining out. City households spend on average 45.7 percent of their yearly food budget on restaurants, delivery or take out. That’s 5.6 percent of the entire household budget and translates to slightly over $4,000 a year. Comparatively, that number is just under $2,500 on average statewide and $2,700 nationwide.
Is eating out affordable in Philadelphia? On average, a meal at a cheap restaurant runs about $15. That’s the same as the national price. A three-course meal for two at a mid-range restaurant will leave you with a $55 check, five bucks below the national average. Even a combo meal at Mcdonald’s is the same as the rest of the country at about $8.
Transportation costs in Philadelphia
It’s no secret that commuting in Philadelphia is tough if you’re driving your own car. The city is known as the second-worst for traffic congestion, behind only New York City in the number of hours spent in the car to and from work.
But at least the cost of commuting in Philly isn’t horrifically pricey. The city has a Transportation Index of 13.5 percent, good enough for just the 29th most expensive in America.
Like in many major east coast cities, it’s expensive to own a car. Thankfully, the price of a gallon of gas (unleaded regular including all taxes) in Philly averages $2.43, just 28 cents above average. That last part is key, as Pennsylvania has one of the highest gasoline taxes — currently 58 cents per gallon.
One of the biggest auto expenses in the city is parking. In Philadelphia, monthly parking averages $275 a month. The cheapest lots, in outlying areas, run about $140 a month while lots and garages near or in Center City can run as much as $500.
And while there are no toll roads within the Philly city limits, the Pennsylvania Turnpike runs east/west just north of town. On average, the PA Turnpike charges 13 cents a mile if you pay with EZPass (and about double that without).
However, the city features four toll bridges that run to and from New Jersey: the Walt Whitman, Betsy Ross, Ben Franklin and Tacony Palmyra Bridges. All are free from Philly into Jersey but carry a toll of five dollars to return (except the Tacony Palmyra which is three).
Public transit in Philadelphia
Thankfully, Philadelphia has a robust public transportation system. The city’s transit authority SEPTA offers four subway and elevated train lines, 13 regional rail lines and dozens of bus and trolley routes. Nearly a quarter of Philadelphia workers commute via public transit. The city’s transit score is 68.
All city rapid transit, which includes trolleys, buses and trolley buses, costs $2.50 for a single trip regardless of distance or time of day. That goes down to two dollars when using the city’s new smart card program, SEPTA Key. Those are the same prices for Philly’s rapid rail lines as well, which includes the Broad Street, Market Frankford, Ridge Spur and Norristown High Speed lines subways and elevated trains. A transfer is a dollar, with the first one free.
As with most systems, prices are cheaper when purchased in bulk in advance. A weekly transit pass in Philly runs $25.50 and $96 for a monthly ride pass. Overall, this is one of the lowest prices of any city in its category (when calculated as a percent of income).
SEPTA’s commuter rail network is known as Regional Rail and operates within the city and to the suburbs as well as New Jersey and Delaware. Trains depart any of the 150 stations across the region about once an hour on average. All of its 13 lines pass through the city’s three Center City stations: Suburban, Jefferson and 30th Street (also home of the city’s Amtrak hub).
Prices for regional rail vary depending on distance and day traveling. For travel entirely within the city, a one-way ticket runs $5.25 during the week and $4.25 on the weekend and holidays.
For travel to and from the suburbs, tickets cost up to $6.75 on weekdays and $5.25 on the weekend depending on to and from which “zone” you are traveling. Pricing is higher if purchased on board with cash rather than in advance or with a smart card. Seniors and children riding with adults ride free on any mode while riders with disabilities travel at half price.
Walking and biking in Philadelphia
Philadelphia is also an eminently commutable city without requiring power transport. The gorgeous city streets are highly walkable, with an excellent walk score of 84.
As well, Philly is a haven for bikers with designated bike lanes and bike paths throughout the city and a bike score of 76.
The city also provides a convenient bicycle ride share program called Indego. The program offers over 1,000 bikes at 125 stations throughout the city. Pricing varies from four dollars for an individual half-hour to $17 a month for unlimited hour-long rides.
Healthcare costs in Philadelphia
Pennsylvania Hospital, founded in 1751 by Benjamin Franklin, is the oldest hospital in the U.S. Today there are over a dozen major hospitals in Philadelphia, along with a slew of smaller ones, a number of children’s hospitals and several cancer specialty centers. Philly is a hotbed for quality healthcare.
The Philly healthcare scene’s excellence balances by the breadth of available service. This has kept healthcare prices in the city stunningly low. The cost of living in Philadelphia for healthcare is 0.4 percent above the national average and the 111th most expensive in America.
A visit to a doctor (specifically a general practitioner) is $133 on average. This is good enough to rank 51st nationwide. Need your teeth checked? An appointment with a dentist for a cleaning is just the 141st priciest in the country, nearly 70 cents below average.
The best value in health care in Philly? Prescriptions within the survey are $88 below the national average, the 14th cheapest of all cities.
However, if your furry roommate needs attention, you might be paying a bit more. A veterinary visit (for an annual exam) is the 17th most costly in the nation.
While these numbers are promising, it is difficult to determine an average cost of healthcare overall as needs vary depending on your individual health.
Goods and services costs in Philadelphia
Most everything else that isn’t included above falls as goods and services. Goods covers everything you buy that’s not consumable or isn’t a tangible item. This could be anything from paper clips to potting soil to concert tickets. Services include most visits with professionals that don’t involve health care or your car. This is any personal business trade from dog grooming to plumbing repair, yoga instruction to landscaping.
As far as a goods and service economy, Philadelphia is incredibly affordable for its size. In fact, the cost of living in Philadelphia for goods and services is 5.6 percent above the national average. Despite its ranking as the sixth-largest city in the nation, its goods and services rank is 61st.
There are a number of items that are inexpensive in Philly. For example, a newspaper subscription averages just $14, just the 60th priciest in the nation. An average movie ticket for a first-run film ranks 61st at just $12.
Think it is expensive to get your hair done in a cosmopolitan east coast city? It’s not cheap, but a visit to a salon will run you $61, that’s just the 20th most expensive in the nation. In fact, it’s comparable to a visit to a stylist in Manhattan or Queens, about $23.50 above the national average.
Taxes in Philadelphia
The full sales tax rate in Philadelphia is 8 percent. This represents 6 percent from the state and the remaining 2 percent from Philadelphia County. The county is conterminous with the city, which has no sales tax of its own.
In general, non-sales-taxed items in the state include food (both grocery and dining), medicine and drug store items and most clothing. If you purchase $1,000 of taxable items in Philadelphia, you’ll be paying $80 in sales tax.
The city also charges a sugary drink tax. The 1.5 cents per ounce tax applies to sodas and any non-alcoholic beverage that lists sugar or any sweetener as an ingredient. The proceeds primarily benefit city education and recreation programs.
Philadelphia’s current property tax rate hovers around 1.4 percent. City income wage tax sits just under 3.9 percent. The wage tax applies to all Philadelphia residents regardless of where they work and all Philadelphia-based employees regardless of where they live.
How much do I need to earn to live in Philadelphia
The monthly rent in Philadelphia is $2,152 on average for a one-bedroom apartment. That represents a 2.56 percent increase in similar units year to year.
Experts suggest spending no more than 30 percent of your annual income on housing. Multiplying the rent on average for a one-bedroom by 12, you determine the average yearly rent is $25,824. This means you should have an annual household income of at least $86,080.
However, according to Payscale.com, the average salary in Philadelphia is $69,000. That means that a resident earning the average salaried wage would be budgeted to spend $21,000 a year or $1,750 a month on rent. That’s over $400 less than the average one-bedroom apartment.
Check out our rent calculator to see how much you can afford each month.
Living in Philadelphia
There are a number of factors to consider when moving to, within or around Philadelphia. But regardless of the category, the cost of living in Philadelphia is moderate compared to many cities its size. It’s a budget-friendly city especially when it comes to health care, housing and other channels.
No matter your budget, there’s a perfect Philly neighborhood and comfortable home waiting for you. Check out the great places to lay your head at night in the Philadelphia apartment rental listings or for homes to buy.
Cost of living information comes from The Council for Community and Economic Research.
Rent prices are based on a rolling weighted average from Apartment Guide and Rent.’s multifamily rental property inventory of one-bedroom apartments in April 2021. Our team uses a weighted average formula that more accurately represents price availability for each individual unit type and reduces the influence of seasonality on rent prices in specific markets.
The rent information included in this article is used for illustrative purposes only. The data contained herein do not constitute financial advice or a pricing guarantee for any apartment.
Home loans for disabled buyers are widely available
Contrary to popular belief, people with disabilities are not only eligible for mortgages but also have access to specialized home loans and grants to help disabled people buy a home.
These specialized disability home loans often feature more lenient credit score requirements and lower down payments. Some even offer grants to cover closing costs or modifications to make the home more accessible.
Verify your home buying eligibility. Start here
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Can I buy a home on disability income?
Yes, you can buy a home on disability income, as long as it is stable, reliable, and expected to continue for the foreseeable future. Lenders, including those offering government-backed loans like FHA and VA loans, accept disability income as a qualifying source for mortgage applications.
According to the Fair Housing Act, lenders can’t inquire about your disability. However, they will inquire about your income, which can be a major barrier for disabled home buyers.
Staying within your lender’s debt-to-income ratio limits can be difficult if you have little or no income from standard employment. Fortunately, many mortgage programs will accept disability income on your application.
Verify your home buying eligibility. Start here
Can I buy a house on SSDI or SSI?
You can buy a house on Social Security Disability Insurance (SSDI) or Supplemental Security Income (SSI). Both SSDI and SSI are stable sources of income, and lenders accept them as qualification for home loans for disabled.
Eligible income sources for a mortgage can come from:
Long-term disability income from an employer or insurer
Supplemental Security Income (SSI) through Social Security
Social Security Disability Insurance (SSDI)
These types of income are allowed under all the major home loan programs, including conforming, FHA, VA, and USDA mortgages.
However, mortgage lenders set their own lending guidelines and may choose not to accept certain kinds of income. So if you’re denied due to disability income on your application, try again with a different lender. You might receive approval elsewhere.
Disability income requirements
Like any other form of income, disability income needs to be properly documented for a mortgage lender to count it on your home loan application.
The most important thing is that you can verify your disability income will continue for at least three years or that you have a guaranteed job once you’ve recovered at the same income level as before. In the latter case, you would qualify for the lower of the two monthly income streams.
Check your home loan options. Start here
If you receive long-term disability income or insurance benefits, your lender will need to see a disability policy or statement from the payer of the benefits (typically the insurance company or a former employer).
The documentation requirements for SSI and SSDI depend on who is applying for the loan.
If the mortgage applicant is the person receiving SSI or SSDI income, you can document it one of two ways:
The Social Security Administrator’s (SSA) Award Letter; or
Proof of current receipt
If the mortgage applicant is not the person receiving Social Security benefits (for example, a parent buying a home for a disabled child), they will need to present both of the documents above. They’ll also need to prove the income will continue for at least three years—for example, by verifying the recipient’s age.
Home loans for disabled home buyers
People with disabilities and parents who want to buy a home for a disabled child can get special mortgages.
Homeownership assistance programs exist for people who are not disabled but live with qualified disabled people. A caregiver or home health care provider who lives with a disabled family member often qualifies for a special mortgage offering.
Verify your home buying eligibility. Start here
If you qualify for Medicaid in your state or get disability payments from the government, you may be able to use one of a number of special mortgage programs. That still holds true if you have a low income despite working.
Who will own and occupy the property and how they will pay their mortgage will determine the program’s requirements. In addition, they vary depending on whether the program is local, state, or federal.
Here are several of the best-known home loan programs for disabled persons.
1. Fannie Mae HomeReady Loan
Fannie Mae HomeReady is a special conventional loan program that helps people with low to moderate incomes and good credit get affordable financing options, including disabled people.
The program aims to help people who want to buy their own home by giving them competitive interest rates, lower down payment requirements (as low as 3%), and more flexible credit rules. HomeReady also helps disabled borrowers by taking into account non-traditional income sources like Social Security and long-term disability benefits.
In fact, Social Security Disability Insurance (SSDI) and Supplemental Security Insurance (SSI) are both acceptable income sources for the HomeReady loan program.
Who qualifies for HomeReady?
To qualify, disabled home buyers need the following:
A credit score of 620 or higher
At least a 3% down payment
Low- to moderate-income (no more than 80% of their area’s median income)
Must occupy the home as a primary residence
The good news is that your down payment money doesn’t have to come out of your own savings. HomeReady lets you cover the entire down payment using grants, down payment assistance funds, or money gifted from a family member or caretaker.
However, many other mortgage programs require the buyer to pay at least some of the purchase price out of pocket. It can be a challenge if your income is fixed.
Buying with non-occupant co-borrowers under HomeReady
Along with its low down payment, HomeReady offers a big benefit: It allows “non-occupant co-borrowers.” A non-occupant co-borrower does not live with you but is included in your mortgage application process.
You can use your non-occupant co-borrower’s credit history or income to help you qualify for a loan if you don’t meet the credit or income limits on your own.
For example, a parent or sibling with strong credit and a high income are often added to their disabled family member’s mortgage. Remember that the total income counted toward your mortgage qualification must remain below HomeReady income limits.
Fannie Mae does not offer HomeReady loans directly, allowing home buyers to shop among lenders for the best rate.
Check your eligibility for Fannie Mae loans. Start here
2. FHA home loans for disabled persons
FHA loans, the Federal Housing Administration backs, make it easy and affordable to become a homeowner by offering government-insured mortgages with low credit scores and low down payment requirements.
These loans are made for people with low credit scores or low incomes who may have trouble getting traditional mortgages. This includes people with disabilities.
FHA loans accept disability income as a qualifying source, provided it is stable and well-documented. FHA loans help disabled people achieve their dream of homeownership by offering low down payment options (as low as 3.5% for qualified borrowers), flexible credit rules, and competitive interest rates. This gives everyone the same opportunities.
Who qualifies for an FHA loan?
FHA loans allow both SSI and SSDI income on your mortgage application. FHA rules say that you can use any of the following documents to prove disability income:
Federal tax returns
The most recent bank statement showing receipt of income from social services programs
A Proof of Income Letter, also known as a “Budget Letter” or “Benefits Letter” that shows income from the SSA
A copy of the borrower’s Social Security Benefit Statement
Another benefit of the FHA loan is that you can cover 100% of the down payment and closing costs using down payment assistance or gifted money. This eliminates the need to save up a large amount of money before you can buy a home.
On the downside, you’d probably have to pay the FHA’s mortgage insurance until you pay off the house—unless you refinance out of the loan sooner.
Verify your FHA loan eligibility. Start here
3. VA home loans for disabled veterans
The U.S. Department of Veterans Affairs-backed VA loan program is among the best home loan programs available. In addition to having some of the lowest mortgage rates available, VA loans don’t require a down payment. This makes VA loans appealing to any veteran or service member.
But there are more VA loan benefits for veterans with medical problems or disabilities caused by their service:
You can include VA disability income on your mortgage application.
You are exempt from paying the VA loan funding fee. Spouses of veterans who died in the line of duty may also be exempt
There are no minimum service requirements. If you have a service-connected disability, there is no minimum time to serve before you’re eligible for a VA home loan
You may be eligible for a property tax exemption and/or a mortgage tax credit to reduce your taxable income. Requirements vary by state, level of disability, and other factors. Check with your state’s tax authority for more information
You’ll also need to meet the VA’s standard lending requirements to qualify for one of these loans.
Income from disability benefits can be used to satisfy VA loan income requirements. Technically, there’s no minimum credit score to qualify for a VA loan. However, many lenders require a FICO score of at least 580 to 620.
Check your VA loan eligibility. Start here
4. USDA home loans for disabled persons
The USDA loan program, which the U.S. Department of Agriculture backs, is another zero-down mortgage that enables qualified borrowers with disability income to purchase a home. The USDA offers two loan programs: USDA Direct and USDA Guaranteed.
USDA Guaranteed Loans
While the USDA backs these loans, they don’t come directly from the federal government. They come from private lenders that the USDA has approved. Many mainstream mortgage lenders can offer USDA Guaranteed loans.
USDA Guaranteed loan requirements typically include the following:
Income is no higher than 15% above your area’s median income
A credit score of at least 640
The home you’re buying must be in a USDA-approved “rural area”
USDA Direct Loans
Homebuyers with disabilities whose income falls below the area’s median income may qualify for a USDA Single Family Housing Direct Loan.
The Direct Loan is a subsidized mortgage program, meaning that the USDA will help pay for a portion of the homeowner’s monthly mortgage payments. The applicant’s household income determines their eligibility for this housing program and how much payment assistance they will receive.
Another significant advantage of the USDA Direct mortgage program is that fixed interest rates can be as low as 1% (when modified by payment assistance).
Who qualifies for a USDA Direct Loan?
USDA-subsidized home loans are available to borrowers, including disabled borrowers, who:
Do not have safe, decent, or sanitary housing
Are unable to get an affordable mortgage
Meet citizen or eligible non-citizen requirements
Are not barred from federal loan programs
Have qualifying low income for their area
In addition, the home being purchased must meet the following guidelines:
Square footage usually can’t exceed 2,000
The home price must be within local loan limits
The home must not be designed for “income-producing activities”
Those who qualify for a USDA Direct Loan can use the funds to purchase a new or existing home. In addition, they can build, repair, or renovate a house.
The payback period ranges between 33 and 38 years. This extended repayment with the low rate help make payments affordable.
How to apply for a USDA Direct Loan
Unlike USDA Guaranteed loans, private lenders do not offer the USDA Direct Loan. You’ll have to apply with your local Rural Development Office. Be aware that application processing times could be longer and the process could be less convenient. Buyers who can qualify for the USDA Guaranteed loan program should try that first.
Buyers with moderate incomes who don’t qualify for the USDA’s subsidized program can still access a USDA Rural Housing loan. It has looser guidelines but still allows zero down and offers below-market mortgage rates.
The Section 8 program run by the U.S. Department of Housing and Urban Development (HUD) is best known for offering rental housing assistance to low-income families.
But there’s also a lesser-known Section 8 housing program for home buyers, called the “Housing Choice Voucher (HCV) homeownership program.” What’s more, this program provides housing assistance to disabled buyers who meet its eligibility requirements.
“Keep in mind that not all lenders underwrite these types of loans,” cautions Jon Meyer, The Mortgage Reports loan expert and licensed MLO. “You’ll need to use one of the program’s participating lenders.”
People who are eligible for Section 8 rental assistance can use their voucher to buy a home instead, thanks to the homeownership voucher program. In this case, HUD would assist in covering mortgage payments and other homeownership costs instead of rent.
Who qualifies for HUD’s Housing Choice Voucher program?
To qualify for this housing assistance program, you’ll need a current Section 8 voucher. If you do not have one, you can talk to your local public housing authority about meeting with a housing counselor to start the process.
Keep in mind that not all PHAs participate in the HCV homeownership program. Section 8 voucher waiting lists can be lengthy.
Other requirements for the Section 8 homeownership program include:
Household income not below the monthly federal Supplemental Security Income (SSI) benefit for an individual living alone
Buying an acceptable property according to HUD’s guidelines
Participation in PHA’s pre-assistance homeownership and housing counseling program
For qualified home buyers, the homeownership voucher funds can be used for:
Mortgage principal and interest, real estate taxes, and homeowners insurance
Mortgage insurance
Utilities, maintenance, and major home repairs
Costs to make the home accessible for independent living if needed. Home improvements can include building ramps
As a housing voucher holder, you’ll pay around 30% of your adjusted monthly income for housing.
Financial assistance and grants for disabled home buyers
Unless you qualify for a zero-down USDA or VA loan, you’ll likely need to come up with cash for the down payment and closing costs on your new home. Luckily, many programs can help reduce or get rid of these out-of-pocket costs. Additionally, disabled homebuyers have greater access to these programs than other buyers.
Check your home loan options. Start here
Down payment assistance grants
Every state has a selection of down payment assistance programs (DPAs), which offer funds to help cover home buyers’ down payment and/or closing costs. These are typically geared toward first-time home buyers and home buyers with low incomes.
Down payment assistance comes in two different forms:
Grants: Assistance that never has to be repaid
Loans: Assistance that must be repaid. DPA loans typically have low or no interest, and many are forgivable if the homeowner keeps the home a set number of years (often 5-10)
These assistance programs will typically be offered by your state’s Housing Finance Agency or county and local governments. Some non-profit organizations also provide DPAs.
You can learn more about down payment grants here, or ask your real estate agent or loan officer to help you find programs once you’ve started the home-buying process.
VA grants for disabled veterans
The Department of Veteran Affairs has home loan programs and home modification grants to help disabled veterans buy a home or make their current home more accessible.
To qualify for these programs, the veteran must have a service-connected disability and currently live in or purchase the home in question.
Specially Adapted Housing (SAH) Grants: The VA’s largest grant, used to “buy, build, or change your permanent home” (a home you plan to live in for a long time). This grant is only available to 120 disabled veterans each year
Special Housing Adaptation Grants (SHA) Grants: A lower grant amount than the SAH grant, used to “buy, build, or change your permanent home”
Temporary Residence Adaption (TRA) Grants: Intended to help disabled veterans make accessibility upgrades to a family member’s home they’re living in temporarily. To qualify for a TRA grant, you must be eligible for either an SAH or SHA grant
USDA Single-Family Housing Repair Grant
The U.S. Department of Agriculture offers a Housing Repair Grant to help low-income families “repair, improve, or modernize homes, or remove health and safety hazards.”
The USDA Housing Repair Grant can provide eligible homeowners with a grant of up to $10,000 or a loan of up to $40,000 to pay for home repairs and upgrades. The more popular choice, loans, have a 20-year repayment period and a fixed interest rate of just 1%. You can also combine grants and loans to receive up to $50,000 in total assistance.
To qualify, the borrower must:
Be the homeowner and occupy the house
Be unable to obtain affordable credit elsewhere
Have a family income below the “very low limit by county”
For grants, be age 62 or older and not be able to repay a repair loan
Nonprofit help for disabled home buyers
Four major national programs can help low-income families and disabled people become homeowners.
Verify your home buying eligibility. Start here
National Disability Institute
The NDI’s mission is to build better financial futures for people with disabilities and their families. They do so through employment initiatives, technical housing assistance, financial education, and additional resources.
The NDI works with financial institutions, programs run by local and state governments, and other groups to help people with disabilities find housing.
Habitat for Humanity
Habitat for Humanity builds accessible homes as defined by the Americans with Disabilities Act (ADA). It can also provide affordable mortgages to those approved for its program.
You apply through your local Habitat for Humanity affiliate, and you must be willing to take an active role in the process of constructing your new home. This is known as “sweat equity.”
Note that sweat equity is not limited to the physical construction of the home. Habitat says, “Sweat equity can also include taking homeownership classes or performing volunteer work in a Habitat ReStore.” Homebuyers with disabilities qualify for this program.
Rebuilding Together Americorps
Another option is Rebuilding Together AmericaCorps. This agency prides itself on building affordable housing for families with one or more disabled members.
According to its site, 51% of households served by Rebuilding Together “have a resident with a disability, many of whom have mobility issues that make it difficult to remain safely at home.”
In addition to building affordable housing, the organization works to improve existing homes to make them safer and more accessible, so disabled individuals can remain at home more easily.
Homes for Our Troops
Homes for Our Troops gives veterans hurt while fighting overseas after September 11, 2001 a place to live without a mortgage. The program provides “custom homes that are specially adapted” so they can live in “a safe and barrier-free environment.”
To qualify, you must be retired or in the process of retiring and pass a criminal and credit background check. On the Homes for Our Troops website, you can ask for help and find more information about housing for veterans.
Parents buying a home for a disabled child
Parents and caretakers of people with disabilities can access special mortgage programs to buy a home for their adult child.
These programs allow parents to buy the home as an “owner-occupied residence” even though they won’t live in it. This means they can get better mortgage rates and loan terms than if they bought the property as a second home.
Check your home loan options. Start here
Fannie Mae loans for buying a house for your child
Parents who want to buy a home for their disabled child can choose a Fannie Mae-backed conforming loan as one option. With a Fannie Mae-backed loan, a home purchase counts as owner-occupied if it’s a “parent or legal guardian wanting to provide housing for their handicapped or disabled adult child.”
Fannie’s guidelines state, “if the child is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the parent or legal guardian is considered the owner/occupant.”
Fannie Mae offers a wide range of conforming mortgage loans for parents or guardians wanting to buy a home for their child. Options include:
3% down “Conventional 97” loans
5% down “Conventional 95” loans
10% down “piggyback loans” with no private mortgage insurance (PMI)
20% down conventional mortgages with no PMI
Since the home is owner-occupied, you can finance it at a low rate without the interest rate markups that come with second homes and investment properties.
Using Social Security benefits
If a parent or legal guardian gets disability benefits from Social Security for a child or other dependent, they can use this income to qualify for a mortgage.
In order for the disability income to be eligible, the parent or guardian needs to show an SSA award letter, proof of current receipt, and proof that the income will continue for at least three years.
Options for disabled buyers unable to purchase a home
Navigating the housing market is a unique journey for everyone, and the reality is that not all are in a position to purchase a home.
However, for disabled individuals, there’s a silver lining. While the challenges they face can be multifaceted, many may qualify for special housing assistance designed to address their specific mental illness or physical disabilities. Let’s explore these options.
Social Security disability housing assistance
Receiving Social Security Disability Insurance (SSDI) benefits can be a lifeline, especially for those with mental illnesses. These benefits, while primarily serving as income replacement, can be a pivotal resource in securing housing opportunities.
However, keep in mind that Social Security, while providing crucial old age, survivor, and disability benefits, does not directly extend housing assistance to its beneficiaries.
Nevertheless, there exists a range of social programs designed to cater to the needs of low-income individuals, persons with disabilities, and seniors by offering vital housing support.
As a result, a lot of people who get Social Security can use these different programs because they often fall into one or more of these eligible groups. This gives them access to the important housing help they need.
Housing Choice Voucher Program (Section 8)
Section 8 Housing Choice Vouchers are a godsend for many, especially non-elderly disabled individuals. Designed to assist very low-income families and those with disabilities, these vouchers provide subsidies to rent in the private market.
Public housing agencies distribute these vouchers, and they can be a significant step towards accessible housing.
Income, including SSDI benefits, and disability status are taken into account when determining eligibility.
HUD’s Continuum of Care (CoC) program
The CoC program goes beyond just offering shelter. It’s about creating a comprehensive support system that addresses the root causes of homelessness. By offering specialized supportive services tailored to individual needs, the CoC ensures that everyone, from extremely low-income people to very low income individuals, has a shot at stable, accessible housing.
In situations where individuals with disabilities find themselves facing homelessness, the local CoC becomes a vital lifeline, offering essential assistance in finding immediate shelter for safety and rest. Moreover, the CoC goes beyond providing temporary relief and aims to foster long-term stability by connecting disabled individuals to transitional housing programs.
The HUD-VASH program provides supportive housing for our disabled veterans, especially those who are at risk.
This initiative, a collaboration between HUD and the VA, provides both housing options and case management services. The combined effort ensures participants receive the care and support they need.
HUD-VASH vouchers function similarly to other Housing Choice Vouchers (HCVs), but with additional benefits and assistance such as dedicated assistance during your housing search.
National Housing Trust Fund and Section 811
The National Housing Trust Fund, along with Section 811, focuses on creating housing options for the most vulnerable, including those with mental illness, physical disabilities, and extremely low income households.
Section 811, in particular, offers supportive housing for non-elderly people with disabilities. These programs provide subsidies and supportive services, ensuring participants have access to affordable and accessible housing.
Allocations of NHT funds are distributed on a state-by-state basis, tailoring support to the specific needs and priorities of each region. If you are interested, the best course of action is to get in touch with your state’s housing finance agency.
HUD’s $212 Million Boost for Section 811 Program
The U.S. Department of Housing and Urban Development (HUD) has recently announced a $212 million funding opportunity aimed at increasing affordable housing options for persons with disabilities. This funding will not only help in creating new housing but also in rehabilitating existing units.
The funds are specifically designated for the Section 811 Supportive Housing for Persons with Disabilities program. This initiative seeks to both expand housing availability and offer supportive services for those with very-low to extremely-low incomes, making it a significant development in the realm of home loans and grants for disabled individuals.
For those interested in taking advantage of this opportunity, further details can be found in the funding notices for the Section 811 Capital Advance Program and Section 811 Project Rental Assistance. It’s important to note that the deadline for submitting applications is February 8, 2024, so timely action is essential.
Where to find Social Security disability housing assistance
If you or someone you know is in need of housing assistance, it’s crucial to gather the necessary contact information for these programs. Local public housing agencies, community centers, and online platforms often have directories and resources.
Remember, subsidies, supportive housing, and other services are within reach. It’s all about taking that first step.
Home loans for disabled buyers FAQ
Check your home loan options. Start here
Can someone with a disability get a home loan?
Yes, common home loans for disabled buyers include government-backed options such as FHA loans and VA loans, which offer lenient credit requirements, lower down payments, and competitive interest rates. Also, programs like Fannie Mae’s HomeReady Mortgage and Freddie Mac’s Home Possible Program are designed to meet the needs of disabled and low- to moderate-income borrowers, making homeownership more accessible and affordable.
What assistance is available for disabled people who want to buy a home?
There are special programs like Fannie Mae’s HomeReady Mortgage and Freddie Mac’s Home Possible Program that can help disabled people buy homes. There are also government-backed loans, like FHA and VA loans, that have easier credit requirements and lower down payments. Also, different state and local housing agencies, non-profit organizations, and grants help disabled people become homeowners by giving them money and resources. Disabled homebuyers can also find help through HUD’s local home-buying programs and the National Council of State Housing Agencies.
Are there home loans for disabled people with bad credit?
Yes, there are home loan options available for disabled people with bad credit. Even though it can be harder to get a mortgage if you have bad credit, FHA loans are well suited for disabled people who want to buy a new home. This type of loan is an attractive option for disabled individuals with bad credit, as they accept credit scores as low as 500 with a 10% down payment or 580 with a 3.5% down payment.
Do FHA loans accept disability income?
Yes, FHA loans accept disability income, as long as it is stable, reliable, and likely to continue for at least three years from the date of the mortgage application. Borrowers using disability income to qualify for an FHA loan need to provide proper documentation to verify the source and amount of the income. This documentation may include: award letters, bank statements, and medical documentation, to name a few.
How does the government define disability?
The U.S. government defines disability through the Social Security Administration (SSA) and the Americans with Disabilities Act (ADA). A person is considered disabled by the SSA when they have a medical condition that keeps them from doing substantial gainful activity for at least 12 months or is expected to result in death. The ADA defines a person with a disability as someone who has a physical or mental impairment that substantially limits one or more major life activities. Both of these definitions focus on how the disability affects a person’s ability to do important tasks or take part in everyday activities.
What is disabled as defined by HUD?
The U.S. Department of Housing and Urban Development (HUD) defines a person with disabilities as someone who has a physical or mental impairment that substantially limits one or more major life activities, has a record of such impairment, or is regarded as having such an impairment. This definition excludes individuals currently using illegal controlled substances, those addicted to a controlled substance, or those convicted for the illegal manufacture or distribution of a controlled substance.
What are the requirements to be eligible for disability housing assistance?
To be eligible for disability housing assistance through HUD, an individual must meet HUD’s definition of “disabled,” have a very low income (generally below 50% of the area median income), be a U.S. citizen or have eligible immigration status, and meet other program-specific requirements, which can vary depending on the specific housing assistance program.
Does HUD have a disability assistance program?
Yes, HUD offers several disability assistance programs. One primary program is Section 811, the Supportive Housing for Persons with Disabilities program. This program provides funding to develop and subsidize rental housing with supportive services for very low and extremely low-income adults with disabilities. Additionally, HUD offers other programs and initiatives that cater to individuals with disabilities, ensuring they have access to affordable, accessible housing and supportive services.
Explore all your home buying options
Mortgage lenders can connect you with loan programs that help people with disabilities become homeowners.
Shop with several competing lenders to find the best program and most competitive interest rate for you. There are many assistance programs for disabled home buyers and especially for low-income families or individuals.
In addition, be sure to ask your loan officer, real estate agent, or Realtor about financial assistance programs available in your area. These programs can make buying your own home more affordable than many people expect.
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