Loans For Single Mothers: Financial Assistance In Any Situation

Being a parent isn't easy. There are always a hundred things to do and a thousand little things to remember, take care of, and decide. It is even more difficult when you are the only parent in the family, on whose shoulders all the worries fall: from earning money to cooking and helping with homework.

However, this is a fairly common problem in the US. Thus, according to the US Census Bureau, 80% of the 11 million single-parent families with children under 18 have single mothers as heads.

No matter how hard it is for single mothers, they try their best to provide a better future for their children, including financially. But sometimes they need help to do so. And sometimes, money is needed here and now, but the deferred funds are not enough. So for these and a dozen other situations, there are loans for single mothers.

What is the problem for a single mother in obtaining a loan?

The fact that single parents are assessed using the same standards as everyone else is one of the major issues impeding their ability to borrow. Unfortunately, the majority of single parents won't be able to meet the credit standards of most lenders if they rely solely on their income. Even if you have a part-time job or receive government assistance, most lenders will still view your income as insufficient. This is independent of your ability to pay back loans.

Because of the requirements, getting a loan as a single parent might be scary and challenging. For instance, due to the high cost of education, it is exceedingly challenging for a single parent to support a child to attend school financially. Additionally, if a single parent receives any form of education credit, they may no longer qualify for Social Security benefits. This happens because, according to some regulations, student loans are considered a type of income.

Can single mothers still get a loan?

Single mothers can get a loan when they need financial help. You can get a loan with or without a cosigner; however, mothers who raise their children alone have many options. In addition, not only personal loans are available to you - you can get different types of loans depending on your needs. Lenders evaluate your credit history, income, and financial history when you apply for a loan. You will have a strong chance of receiving a loan if all the conditions are met.

Here are some of the types of loans that single mothers can count on:

Home loans

FHA home loans are mortgage loans that the Federal Housing Administration regulates. This government agency is part of the Department of Housing and Urban Development. Since the government insures these loans, the cost of such loans is much less than through private lenders. Other benefits of FHA loans include the ability to have a lower down payment, lower closing costs, and credit qualification is often easier.

Personal loans

Personal loans are a one-stop solution for almost any financial problem that can get in the way of a single mother. They are quite extensive, allowing you to borrow from $1,000 to $50,000 at low-interest rates. Due to the fact that personal loans have a long repayment period (often up to 64 months) and fixed interest rates, they are considered very advantageous. At the same time, personal loans are both secured and unsecured. Unsecured ones do not require collateral but pay more attention to credit scores and income. Secured ones require collateral but are more loyal to credit history.

Payday loan

A payday loan is an emergency assistance option. They are short-term and can provide the borrower with a limited amount, often up to $500. Payday loans are suitable for cases of unexpected expenses or urgent financial decisions. Getting a payday loan is usually very easy, and the money can be received within 24 hours. At the same time, it must be paid in full with interest after 14 days (less often - 30 days).

Grants for single mothers

There are a large number of grants for single mothers in the USA. Grants, unlike loans, do not need to be repaid. However, each grant has its own conditions, and it is worth reading them before submitting an application.

Grants come in many forms: cash aid, food stamps, tuition grants, tax credits, and state-administered grants. For a complete list of available grants and eligibility requirements, please visit singlemotherguide.com.