Lenders may view them as having less stability than married couples and a lower chance of success in handling finances. As a result, single women can often find themselves at a disadvantage when it comes to financing a home purchase.
Fortunately, there are strategies that single women can use to improve their chances of obtaining a loan and earning more equity from their purchase. To start, women should focus on building a strong credit score and credit history. Taking out small loans and credit cards, making payments on time, and avoiding lower balances will all help to establish a positive credit history. Additionally, women should try to save up for a 20% down payment, as this will not only reduce the amount of the loan, but it will also result in lower interest rates.
Another helpful strategy is to look for properties where the price is below the estimated market value. Doing this allows women to get the most “bang for their buck” and receive more equity in the long run. Additionally, women can look into the availability of government assistance programs, such as those offered through the Department of Housing and Urban Development (HUD). These programs can offer financial relief and provide helpful resources for women in search of a home.
Once a woman has secured a loan, she should remember to make timely payments and maintain her credit score even after the loan has been approved. Women should also take advantage of special savings and investment opportunities that are available to them, such as employer-matched retirement accounts and real estate investment trusts.
By leveraging these strategies, single women can become empowered to purchase their own homes. With a solid credit score, sizeable down payment, and an eye for a great deal on a property, women can be well on their way to achieving their dream of homeownership. Additionally, they can use government assistance programs and other investment tools to build their wealth and earn more equity from the purchase. Through doing so, women can have the perfect foundation to kick off their journey of financial independence.
This article was contributed on Nov 11, 2023