Introduction
For those single moms who are planning to earn a degree and do not have enough source of income, well I have good news for you. Home loans for you moms out there are one of the many options you might want to keep in mind.
Home loan is usually funded by the bank that is offered against the security of house/property. Home loans for now require a good to excellent credit history, and a reasonable loan to value ratios. Be of use the various types of home loans for interested applicants that might suit their individual needs at the lowest rate.
History
The home loans for single mom’s education grants are usually catered by banks with flexible, competitive rates, and can be consumed for a wide variety of school related cost. Two types of which are closed (fixed term) and open end (variable), which are usually referred to as second mortgage. Both are secured against the value of the property, however, you cannot acquire a home using a home equity loan. The difference between the two types is that fixed term loan is a one-time lump-sum loan with fixed rate while the variable term is a revolving credit loan, where the consumer has the discretion as to the frequency of borrowing against the equity in the property. The minimum amount due per month can be as low as only the interest rate.
Features
Conventional features of home loan are categorized to purpose, loan amount, security, loan tenor. Home loans for moms often used to finance major expense such as home repairs, medical bills or college education. There are different types of home loans for different needs available in the market. Few of which are home improvement loan (renovation and repair of home which are already bought) , home extension loan (stretch an existing home), home construction loan(build a new home), bridge loan (short term loan that will finance the new home and aid the interval period while waiting for the sure buyers of the old house), home conversion loan ( transfer the existing housing loan to the new home), home loans for education grant ( assisted by financial institution to home owners who are differently –able).
Tips and comments
Home loans for those who own limited properties are not a one- time decision. Most especially home loans for single mom, a thorough review on the market value periodically or do check the registration value of the property is a must. Take ample time to evaluate your finances and do a market survey about the buying process. Check also the other fees that may apply for home loans, such as appraisal fees, originator fees, title fees, stamp duties, early pay off fee, closing fees, and arrangement fees. Surveyor and valuation fees may also apply to loans but some can be waived.
Lastly, you also need to comply with the bank’s home loan requirements. Banks determine qualification based on repayment capacity. Financial institutions recommend to all applicants to make sure that the home loans do not surpass more than 40% of your gross monthly income. Moreover, many banks will require your home be insured for their protection. Most importantly, do not give any false information for this could amount to fraud and just get you into trouble.
