It can be more difficult for single parents to attain homeownership because it is harder to save for a down payment and make monthly mortgage payments with a single income, along with the additional living expenses of children to afford.

A variety of homeownership programs are offered by the government and non-profit organizations which can help people with relatively low incomes afford to own a home. Single parents are more likely to have eligibility for these programs, due to their typically lower household income. A few programs offer additional benefits or greater eligibility for single parents…

Single parents have a higher likelihood of acceptance in the Habitat For Humanity (HFH) homeownership program, and generally face a somewhat smaller work contribution requirement than families with two parents. Families help in home construction and are able to purchase a house at limited expense in exchange. According to their web site, the average cost to the owner of an HFH home in the U.S. is only about sixty thousand dollars. The USDA Direct Loan Homeownership Program (Section 502) operates on the basis of a similar concept to promote ownership among people with low or average income levels.

Some state and local government homeownership programs also benefit single parents. For example, the Georgia Dream mortgage program is available to people with a “moderate” income level; it also offers interest-free second mortgages to single parents (as well as first-time or displaced buyers), which provide assistance in paying for the closing costs and down payment. The San Jose city homeownership program has somewhat more favorable eligibility requirements for single parents, and similar programs exist elsewhere. According to FHA.com, a variety of other programs are available which help potential home buyers, including single parents, to afford making a downpayment.

Most other homeownership programs do not specifically favor one parent households, but are more likely to benefit these families because of their lack of a second income. Single parents who are also first-time home buyers or have had to relocate because of a natural disaster will have a better chance of qualifying for some home ownership programs. In general, these types of programs decrease the cost of a mortgage and/or make it less difficult to obtain one.

Regardless of help offered by homeownership programs, it remains important for the individual to carefully consider his or her ability to continuously afford the mortgage payments, property taxes, and other extra expenses associated with homeownership.

Although there are two different types of points in mortgages, most of the time people are referring to a discount point. Discount points are money you pay as a percentage of your loan. It’s basically prepaying interest in exchange for a lower interest rate over the life of your loan. The more points you pay the lower your rate will be.

A point is equal to 1% of your mortgage loan amount. If your loan is for $200,000 then one point would be equal to $2,000, two points would be $4,000 and so on. There are many different loans available with and without points from zero to three points. Basically when deciding how many points you want you have to decide if you’d rather (and can afford to) pay a higher amount upfront with lower monthly payments or a lower amount in the beginning, but higher monthly points.

The best way to decide how many, if any at all, points you should take is to honestly answer how long you believe you’ll stay in the home. Most point combinations have a break even point somewhere between 4-6 years into the loan. The average mortgage tends to last 7 years, but if you aren’t in a stable job or anticipate upcoming changes in your life then taking points may not be a good fit.

Basically, if you’ll be in your house for less than 5 years don’t pay any points. If you plan on being there longer, figure out how much you can afford to pay and then determine if the break-even point is worthwhile.

When you or a hired contractor carries out home improvement work, a permit may be necessary. You will need to determine who is responsible for obtaining it, whether or not the improvement in question requires it, and how large a fee must be paid. Here are some details on successfully getting a home improvement permit:

When contractors perform your home improvement, they will usually acquire any necessary permits for you. The Federal Trade Commission web site warns that contractors who ask the customer to obtain the permit might not have a license. This would also result in a greater cost to the customer, making him or her pay the fee. The FTC advises home owners to ensure that the contract they sign includes getting permits as one of the contractor’s responsibilities. It also indicates that the type of work which must be permitted varies from one municipality or state to the next.

A permit can be directly obtained by the home owner instead, if he or she plans to complete the improvement without a contractor’s involvement. The owner will have to contact the appropriate state or municipal authorities, ensure that the improvement will adhere to building codes, and pay a permit fee. According to BBB.org, the home will undergo an inspection to verify that the project is legally compliant. A few towns and cities list the fees on their web sites; the prices appear to start at about fifty dollars and range up to the hundreds or thousands depending upon the size and complexity of the permitted project.

Many types of home improvement projects need a permit. Even relatively minor improvements sometimes require getting one of them. According to the Michigan Dept. of Labor & Economic Growth, permits are generally mandatory for installing heating, air conditioning, plumbing, electrical, and ventilation systems, as well as fireplaces, decks, pools, water heaters, and fences. Getting a permit is also necessary for some types of renovations and the addition of new rooms. SierraClub.org indicates that many localities charge substantial permit fees on solar panel installations.

Basically, getting a permit is more time-consuming if you are conducting the home improvement yourself (rather than a contractor), it is necessary to obtain one for a wide variety of improvements, and rules vary from one area to the next. For a project to receive permission, it must follow all relevant building and zoning laws.

Attending an auction when buying a home can potentially save the buyer money, but there are some additional aspects to take into consideration which don’t apply with regard to typical real estate sales. Here are some details on how and where buying a home at auction is possible:

Various national government agencies sell homes at auction. According to USA.gov, these include the Internal Revenue Service, Housing & Urban Development, and the Federal National Mortgage Association. Additional agencies sell other types of real estate in this manner, such as non-residential buildings and acreage. Buying a foreclosed-upon home at an auction is another option.

Buying homes and other properties at auction on eBay.com is possible as well. After searching under the “Real Estate” category, for better results check the boxes on the left for “Buying Options: Auctions” and “Items Within … Miles”, then enter your zip code under the “Location” heading and select a a maximum distance. Some listings are actual auctions, others are only advertisements which don’t involve any bidding.

Numerous home auctions charge a “buyer’s premium” in addition to the sale price. Make sure you are aware of the amount before buying. The U.S. Treasury web site indicates that there is no buying premium at Internal Revenue Service real estate auctions. You should determine the acceptable payment methods and required deposit percentage beforehand as well.

Home inspections must be carried out somewhat differently; many auctions have a set series of times and dates when potential buyers can come to inspect them. Other sellers may request that bidders schedule a home inspection prior to the auction (perhaps during it, if it is a long-term auction such as on eBay), or offer other types of arrangements. A complete inspection is important, since these homes are generally sold on an “as is” basis.

As with other kinds of auctions, there might be a “reserve price” which applies when buying a home at an auction. The reserve may or may not be kept secret. If bidding fails to meet or exceed this price, the home will not be sold, and might instead be offered at a fixed price or re-auctioned at a later date.

Basically, when buying a home at an auction it is important to understand all of the financial terms and requirements, as well as carefully examining the home for flaws. Homes are offered at auction by a variety of businesses, government agencies, and individuals.

Selling your home by yourself, without the help of a realtor, has several pros and cons. The greatest advantage is with regard to overall cost, but there are some drawbacks in the areas of convenience and initial expense. Here is a full list of pros and cons involved in selling your home by yourself.

PROS

1. A large commission (usually six or seven percent) won’t have to be paid to a realtor when the home sells. This can produce savings in the thousands of dollars. If a seller spends $500 dollars to advertise his $425,000 residence, selling it will have cost him $25,000 less than a six-percent realtor’s commission.

2. The seller has complete control of where and how often the home is marketed to potential buyers. Realtors have to spend time and money advertising a large number of homes, so they don’t always put sufficient effort into promoting each property. They also might not use the best photos or wording to describe your home.

3. There is a possibility of selling the property yourself by using free or very inexpensive promotional methods, such as internet classified listings, advertisements on local bulletin boards, “word of mouth” about the home being for sale, or promotional signs around your residence.

CONS

1. Selling your home yourself is more time-consuming. Sellers must spend time answering phone calls, showing the house to potential buyers, responding to e-mail inquiries, photographing the property, obtaining necessary forms, and preparing real estate advertisements.

2. The selling expenses are lost if the property fails to sell or you decide not to sell it. These expenses include the cost of newspaper or internet advertising, “for sale” signs, photography supplies, and telephone calls. If you don’t already own this equipment, it will probably be necessary to purchase a quality camera, answering machine, and printer.

3. Some potential buyers are reluctant to consider purchasing homes which are offered for sale by owner. Others may only look at real estate advertising materials which realtors exclusively advertise in, remaining unaware that you are selling your home.

Basically, the pros of selling your home by yourself are that it lets you choose how to advertise it and can reduce costs significantly. The cons are that it has greater up-front costs and takes more time than using a real estate agent. The pros outweigh the cons more when the price of the home is greater, due to the higher commission a realtor would receive for selling it.

Several factors should be taken into consideration when you are looking to find the right real estate agent. This will provide a better idea of the agent’s effectiveness and the convenience of working with him or her. Here are some tips on how to find the best real estate agent for your needs.

1. Location: Is it convenient to visit the real estate agency’s office when necessary? If the office is located nearby, the agent is also more likely to know about the local area and can easily answer a potential buyer’s questions about it. It is beneficial if they have a local or toll-free telephone number as well.

2. Advertising: Look through local newspapers and real estate advertising publications to find out if the agent has many homes advertised in them. How attractive or large are the advertisements, and what sort of information do they provide about each property?

3. Person: When meeting the real estate agent, do you find this person friendly, knowledgeable, helpful, and non-pressuring? This is of importance because not only will you have to work with him or her until the contract expires, but the agent will also have an impact on potential buyers’ decisions.

4. Internet: Does the real estate agency have a web site, and is it well-designed? Are appealing photographs and thorough details displayed for each home? Also check to see if you can find properties listed with the agent on Realtor.com or other sites which display properties from multiple real estate agencies.

5. Promotion: Is the agent willing to offer any special promotional features to help sell your home, such as a “Talking House” transmitter or an online “virtual tour” of your home’s interior? These methods enable potential buyers to conveniently find more information about the property without having to schedule a showing or contact the agent.

6. Commission: Although the commissions charged by real estate agents do not vary greatly, even a slight difference considerably affects the cost. 1/2 percent of a $240,000 sale price produces an increase or decrease of $1,200. You will find that some realtors are willing to negotiate on this percentage.

Additionally, try asking friends who have sold (or are trying to sell) their homes as to what real estate agents they would recommend or discourage you from using. This can provide valuable information to help you find the best realtor in your area.

The use of a variety of different information sources may be necessary to find and compare all of the house prices in a particular neighborhood. Homes in the neighborhood could be offered for sale by owner, listed with various realtors, and/or promoted through services like Assist2Sell.

Local newspapers and the website Realtor.com can be used to find and compare house prices in a particular town or city; these sources more often indicate the street or neighborhood of a house than they did in the past. Realtor.com also offers a neighborhood research feature, which provides average home and rent prices among other details. Most, but not all, realtor-listed properties will appear on Realtor.com. Try checking the websites of local real estate agencies as well.

Internet classified advertising systems and eBay.com’s Real Estate section are sometimes useful to compare for sale by owner house prices in a specific neighborhood, as they also frequently specify neighborhood or street names. A massive number of classified websites exist, but the most listings are likely to be found on a few major sites. eBay Real Estate listings can now be either a classified advertisement format or an actual auction. It is helpful to know the specific neighborhood’s postal zip code when searching for listings online.

Buyers can find details and prices for houses listed with Assist2Sell at their website (assist2sell.com), by selecting a state from the drop-down menu on the home page. Then find the website of a local Assist2Sell office on the list, where homes for sale can be viewed. They are generally categorized into condominiums, single, and multiple unit properties. Street addresses are usually provided for each listing, along with home descriptions, specifications, and several photographs.

Another approach is to drive or walk through the neighborhood, taking note of each “for sale” sign and its street address. Such signs are often located at the entrances to streets in rural areas, especially dead-end roads. After doing this, use the internet to find prices of each house on the list and compare them. However, keep in mind that not every seller chooses to put up a sign of this type.

Applying the above-mentioned techniques should enable you to more easily find and compare house prices in a neighborhood of interest. When comparing house prices, be sure to take into account the different levels of acreage, heating or cooling systems, building condition, annual taxes, and other factors which affect their value.

Interest only mortgages are mortgages where you only pay the interest every month. This means you aren’t paying off any of the principal that you borrowed initially. This usually lasts for a set amount of time. After this “introductory” period you’ll be required to either pay off the loan, refinance or start making larger payments to cover both interest and principal.

These types of mortgages do work well for certain circumstances. For example, if you are definite that your income will be going up in the near future, an interest only mortgage will allow you to afford more house before the raise. Or it can work if you already have a large amount of equity in your home and want to refinance with an interest only loan to use the money for other, more profitable investments. Finally, if you have an irregular source of income, like commissions or seasonal work, you can make the income only payments during slow times and larger payments during larger income times.

The troubles with interest only mortgages are many though. You may end up paying way more in the long run because you aren’t paying off any of the principal. Or you may experience payment shock, where your payments rise as much as two or three times after your introductory period.

Beyond that, you aren’t really building any equity in your home with an interest only mortgage so it doesn’t really make sense to take out this kind of loan except in certain circumstances. Often times, if you take out a interest only loan you’ll find yourself scrambling to pay off the loan or refinance or even possibly losing your home in the end. Whichever type of mortgage you decide on, make sure it is the right choice for your needs and that you’ll be able to pay it off on schedule.

Getting a mortgage is a big event in your life. There are a lot of aspects to obtaining a mortgage and if you aren’t prepared you could make some costly mistakes. Here are some of the most common mistakes borrowers make when getting a mortgage.

One of the biggest mistakes is not reviewing your credit report in advance. If you review your credit report and FICO score before trying to get a mortgage you’ll have a better understanding of your chances to get a loan and what types of interest rates you’ll be looking at. Then, if your credit report is less than desirable you can take actions to improve it, thereby lowering your interest rates.

Another common mistake is not getting pre-approved for a mortgage. A pre-approval will give you an idea of how much of a mortgage loan you’ll be able to get. This helps you determine what houses you can afford.

A third common mistake is not shopping around, or not shopping around well. There are tons of sources for mortgage loans – look into a few rather than just going with what’s convenient or a friend’s recommendation. And be sure to shop by more than just interest rate alone. A low rate isn’t always the best deal. There may be high fees involved with a low rate or a rate increase later down the road. Consider all points of a mortgage before deciding on one.

Also, don’t let lenders influence how much you borrow. Although they are experts at what they do, you should be an expert at assessing your monthly expenses and determining how much you can pay towards a mortgage each month. Lenders will tell you how much you qualify for, but that doesn’t always mean you should take the entire amount available. Only borrow what you can comfortably pay back.

Finally, make sure you understand all of the terminology and conditions. And if you don’t, ask questions. Your loan will include lots of technical jargon, various closing costs and loan terms and conditions. Know what all of these are to avoid any surprises down the road.

If any of these are confusing talk with your lender or another expert and ask questions until they are all clear. It’s important to avoid unnecessary charges or problems with your mortgage by doing so.

Having a home mortgage instead of renting can offer some advantages, even during an economic crisis. These include greater stability of housing costs, the ability to make changes to the property, the mortgage interest tax deduction, and the option to rent part of the home. Read on to learn more about each of these advantages of having a mortgage and owning a home in general…

One advantage of owning your residence is that you can freely make changes or improvements to it (and retain their value), in response to economic conditions during an economic crisis. These might include installing smaller appliances, different heating equipment, more insulation, additional security devices, or an efficient water heater. A home owner can become more self-sufficient in some ways, such as planting a large vegetable garden or setting up a wind turbine. However, a drawback is that expensive maintenance costs can always unexpectedly appear and be the owner’s responsibility to pay.

If you have a fixed rate mortgage, there is no need to worry about the monthly payment changing, even during economic crisis. This advantage does not extend to an adjustable rate mortgage, but these usually at least have limits as to how much their payment amounts can change. The monthly cost for rented homes can change at any time (after the necessary amount of notice has been provided), and there is always the possibility that the owner will sell the property to someone else or even be foreclosed upon, if he or she becomes unable to afford the mortgage and taxes.

Another advantage is that you can rent out part of the home (or other buildings on the property, such as a garage or trailer) for housing or storage, to generate additional income which may be necessary during an economic crisis. Some landlords prohibit this, and sublet renting is less attractive to potential tenants, so owning a home is preferable in this way. A home owner can also do this with the entire home during a time of the year when he or she is elsewhere, or share the house with someone in exchange for a portion of the mortgage payment.

Finally, yet another advantage is that some people are eligible to deduct mortgage interest from their taxes, which does not apply to rent payments. This is a useful advantage in an economic crisis, as it frees up money which would otherwise be paid to the government. Some other additional tax deductions are available to home owners, including deductions for Private Mortgage Insurance and some types of local or state taxes.