Blog Highlights
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You can absolutely buy a home on one income. Start by knowing your budget, checking your credit score, and getting pre-qualified.
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Explore mortgage options designed for single-income buyers, such as FHA or USDA loans, and choose a lender who understands your financial situation.
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Prepare for trade-offs and hidden costs. Smart budgeting, realistic expectations, and a trusted support team can help make solo homeownership a reality.
We understand that buying a home is a big deal. We also understand that buying a home on a single income – whether by choice or circumstance – can feel overwhelming. With the right planning, it's possible to purchase a home on a single income and we're here to help you through the process with this guide. From smart budgeting and making the right mortgage selection to financial preparation and lender support – buying a home on a single income is easier than you may think. Here’s what you need to know.
Know Your Financial Starting Point
The first step in the home buying process is to check your credit score and analyze your debt-to-income ratio to determine how much to budget for a mortgage payment. This needs to be done before you begin house hunting because you'll need to know how much you can afford to spend on a home. Getting pre-qualified will let you know exactly how much house you can realistically manage based on one income. In some instances, real estate agents will refuse to show homes unless you have a pre-approval letter from a lender.
Explore Mortgage Options That Support Single-Income Buyers
There are a variety of mortgage options that are a great choice for single-income homebuyers. We offer home loan options that are designed to support single-income buyers and those in various financial situations, such as FHA loans, USDA loans, and a first-time buyer program with low down payment requirements. We're here to help you choose the perfect mortgage and get you prequalified so you can start your homebuying journey today!
Choose a Lender That Works with You
The most important decision you'll make when buying a home, besides choosing the actual home itself, is selecting the right lender for your needs. Working with a lender like Peach State, that's experienced with the unique challenges of single- income buying is key. It's important to understand your options and to ask questions about things like flexible underwriting possibilities, lower down payment options, and assistance with budgeting or credit building to ensure you get the best deal possible when buying a home on your own.
Prepare for Trade-Offs
It’s also a good idea to educate yourself and be aware that buying a home on one income may require some compromise. Because the loan is dependent solely on your income, it's a smart decision to focus on your needs vs. wants. Making smart choices including home size, location, or amenities allows you to prioritize long-term value and stability over short-term “nice-to-haves” which could mean the difference between buying a home and having to continue to rent.
Plan for Hidden and Future Costs
When budgeting for a home, it's important to remember that the monthly mortgage payment is just one part of homeownership costs. Be sure to plan for hidden and future costs that include property taxes, homeowners’ insurance, maintenance, utilities, and more. In fact, it's a smart money move to build an emergency fund to manage unexpected home expenses so that an untimely home repair doesn’t put you in a financial bind.
Build a Trusted Support Team
When buying a home, solo buyers should lean on experienced professionals, including their real estate agent, loan officer, and even a trusted financial advisor to help guide the decision-making. Even though you're buying a home on your own, that doesn’t mean that you have to go through the process alone. Having a trusted home buying team you can count on for guidance is a smart way to ensure you get the right mortgage for your perfect home!
Peach State is Here to Help You Buy a Home on a Single Income
Whether you're buying a home by choice or circumstance, with the right planning and preparation, doing so on a single income is achievable. Our mortgage team will help guide you every step of the way during your home purchase. Start building equity in a home of your own – contact us today to get pre-qualified for your solo home purchase.
