It might seem daunting, even to the point of being impossible, but there are housing resources for single mothers with even just one income. The dream of owning a home in which a single mom may raise a family can be realized by her following some simple guidelines. These include:
Determining the purchase price of the desired house
This can be done by –
- Not exceeding 26 percent of monthly gross income for house payments, taxes, and insurance,
- Not exceeding 38 percent of monthly gross income for debt payments,
- Securing the value of two or three months’ pay checks in an emergency fund.
- Knowing her cash flow
This involves having ready funds for the monthly house payments, child care, children’s education, and her own retirement.
Saving
This involves thinking long term and investing funds over a period of five years, for example.
Having alternatives
These include combining her income with that of a trusted family member and dividing all the various costs involved. Another avenue is getting the IRS to pay her by giving tax credits for every one of her children under age 17, thereby resulting in savings which could add up to thousands of dollars.
Thinking about funding the retirement plan by setting up a good one as soon as possible.
Hiring a Good Contractor
If a single mother is desirous of building, repairing, or remodeling her home, she will require the services of a good, honest contractor who is likely to make the best use of the funds she has acquired. Submitting the lowest bid for the job is not a guarantee of cost savings. If the contractor does a shoddy job the costs may be more than originally bargained. The following are some tips for hiring a good contractor that are worth considering:
- Look at his experience – this should be at least five years of good quality work, including good habits and performance.
- Check for a license – to ensure he has a valid one, and also that there are no complaints against him.
- Check for a bank account – to see whether he is likely to complete your project and can pay his bills.
- Does he have insurance – relating to workers’ compensation and general liability insurance in order to remove injury liabilities from her.
- Quality of workmanship – this is best judged on site by visiting similar projects completed by the contractor.
- Teamwork ability – relating to the amount of self involvement desired by the mother.
