To renovate your home, it is always said that you need to have two incomes and an excellent credit score. Single parents may feel intimidated to do large renovations to their homes because of strict requirements. The good news is there are many low-income home loans for single mothers. If you are a single mother, you need not worry about acquiring debts if you borrow money for home improvements because a home improvement loan is a great investment for your family.

Remodeling Your Home is the Best Investment

Remodeling your home is not a difficult task for single parents with low-income home improvement loans. You may do large renovations with a home loan that has no minimum credit score. 

When considering financing options for home improvement projects, you should also look into the disadvantages mentioned. Your loan amount and interest rates should not exceed the value of your home after the renovation. Choosing the loan option with fewer risks and minimum requirements is always a great idea and the best investment. If you are planning to do large renovations for your home, make sure to check these financing options instead of conventional loans.

Low-Income home improvement loans for single mothers

1. TGUC Financial

Home improvement loans by TGUC financial provides payment assistance without any equity percentage like other financing options. Even if you don’t have a great percentage of equity in your home, you may borrow a home improvement loan quickly.

TGUC Financial’s home improvement loan doesn’t make your home collateral. The lenders offer loans for both emergency repairs, adding luxury items to your home, and large renovations. You don’t have to worry about credit reports if you are borrowing a loan from TGUC financial. Homeowners can make repairs with a low credit score and don’t require an excellent income with this home improvement loan.

2. FHA Loans- Federal Housing Administration

Federal Housing Administration(FHA) is another low-income financing option to remodel your home. FHA loans don’t require a great credit score to approve your loan. The down payment in this loan option is minimal compared to other financing options. The monthly mortgage insurance is also low, which is an additional benefit for homeowners.

In an FHA loan, there are many requirements despite these flexible options. FHA loans have few limitations, so homeowners won’t have much power to borrow loans in this option. Even if you have a good percentage of equity in your home, you must pay the mortgage insurance. If you are planning to renovate your second home, you may not use FHA loans for the other renovations.

3. Down payment assistance programs

Financial assistance programs like down payment programs qualify the homeowners with a low-interest rate on the first mortgage. These payment assistance programs are exclusive to low-income borrowers. Single mothers may benefit from these down payment assistance programs.

If you are planning a large renovation, these programs may help you finance the repairs and remodeling with a low income. Like FHA loans, these programs come with strict requirements. You must apply for the funding as soon as possible because it’s on a first-come, first-serve basis. The interest rates in this financing option are long-term with high-interest rates.

4. VA Loan – Veteran Loan

Veteran loan option provides loans to homeowners to renovate their homes with no down payment. Surviving spouses of single veteran members may apply for this loan. The VA loan option doesn’t have a down payment option and private mortgage insurance.

Another advantage of borrowing veteran loans is low-interest rates. VA rehab loans are for homeowners who want to repair their homes. Conventional VA loans are for homeowners who are ready to purchase a house. If you are ready to borrow a VA loan, finding lenders will be a challenging task because not all lenders understand the requirements of a VA loan. Not having a down payment in this option may also be a disadvantage since you might have a low percentage of equity in your home.

5. USDA Home Loan – United States Department of Agriculture

USDA home loan lends loan to the renovation and adds it to the purchase cost. The 100% financing option is an advantage for single parents to borrow the loan amount and renovate their homes.

Mortgage insurance premiums with USDA loan options are low compared to other financing options. Direct loans issued by the USDA  are for people who have a  low income. Some packages of home improvement loans by USDA provide both grand and loan. The geographical restriction is one of the disadvantages of borrowing USDA home improvement loans. USDA loans are not applicable for semi-urban and urban areas. If you are planning to buy or renovate your home in an urban area, this loan option will not benefit you.

Home Improvement Loans for Single MothersWhich is the best?

Personal loan options like home improvement loans by TGUC financial come with minimum requirements. You don’t need to have a great equity percentage and there is no fluctuation in the interest rates. 

When compared to the other loan options, you will get approved for the home improvement loan by TGUC Financial faster than with the other options. If you are planning to renovate your home with no additional income sources, TGUC Financial verifies your income and gives you a loan as soon as possible. 

As mentioned above, looking into the disadvantages and advantages of other financing options, TGUC Financial benefits homeowners a lot. Another added advantage in TGUC financial’s personal loan is, you can easily get home contractors. TGUC Financial approves your loan quickly and fetches you a good home improvement contractor at the same time! So, Are you ready to refurbish your home with TGUC financial loan lenders?

Frequently Asked Questions

1. What is the minimum credit score requirement for a USDA home loan?

Homeowners should have a credit score of 640 to get approved for USDA home improvement loans. Even though USDA home loans don’t have credit score requirements, 640 is the minimum to get approved for a USDA loan fast.

2. Why do interest rates in VA fluctuate?

The veteran loan has lower interest rates but the terms of the home loan are longer and you must pay the interest rates for a longer time. The interest rate doesn’t fluctuate but it is more expensive compared to other loan options.

3. What is the application process of TGUC Financial?

The application process of TGUC is flexible for every homeowner. Once you fill in the information in the form, you will know your loan terms and the amount that you are qualified for. The interest rates in TGUC Financial are fixed, you don’t have to pay higher interest rates.