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According to the S&P CoreLogic Case‑Shiller U.S. National Home Price Index, U.S. home prices rose sharply during the pandemic years and remain roughly 40%–45% higher than pre-2020 levels, even after recent market cooling. Prices surged due to historically low interest rates, tight housing supply, and strong buyer demand, and while growth has slowed, prices have not meaningfully returned to pre-pandemic norms.

Data from the National Association of Realtors shoqw that today properties spend close to a month on the market on average.

After multiple rounds of interest-rate hikes aimed at controlling inflation, the housing market has shifted. Higher mortgage rates have reduced buyer affordability, cooled demand, and made price growth uneven across regions. For homeowners, this means selling is no longer guaranteed to be fast or friction-free, especially without pricing aggressively or offering concessions.

If you need to sell your home quickly — because of divorce, foreclosure risk, job loss, or other financial pressure — a traditional home sale may not be the best option.

While you’ll usually receive less money selling your home for cash to an investor or cash buyer — around 10%–15% below market value, according to academic and industry research — it can be a practical option if speed, certainty, and simplicity matter more than maximizing price.

How does a cash house sale work?

In a cash house sale, a buyer pays the seller an agreed-upon amount to purchase the home, without a mortgage or other financing. Cash sales can be made by individual buyers, real estate investors, or by companies that regularly buy houses for cash, called iBuyers.

Some of the biggest and most reputable iBuyers are Offerpad, Opendoor, Zillow Instant Offers, and RedfinNow. 

If you sell directly to an iBuyer, the process typically works like this: 

1. Go to the iBuyer’s website to submit information about your home, including videos and photos if possible. 
2. Receive a cash offer from the iBuyer based on the information you’ve provided. 
3. If you are happy with the initial offer, accept it and set a date for the home inspection and closing. If you aren’t happy with the offer, you may be able to negotiate a higher price if you are able to prove your home is worth more. 
4. The iBuyer will order an inspection of the home and recommend any repairs or a decrease in the quoted offer. 
5. Close on the home and move out (learn where to find affordable movers). 

How to sell a house for cash before or after divorce agreement finalized

In general, attorney legal advice is to not sell any assets acquired during a marriage, or that may be considered marital assets until the divorce is finalized. However, if you and your soon-to-be ex agree, you could sign an agreement through an attorney to put your house on the market to free up much-needed money for both spouses to buy new homes, pay for attorneys, and otherwise get on with life.

If you choose to sell your house — through an agent, For Sale By Owner, or for cash to an investor — typically if it were purchased during the marriage, then any profits would be split 50/50 between you and your partner.

You can use that cash to pay off debt, buy a new home, invest in a different career, save for retirement, or to pay for your kids’ education.

How much do I get if I sell my house as is for cash?

How much money you get selling your house for cash as is depends on the type of cash buyer you sell to, as well as the current state of the market and the condition of your home. 

According to research from the University of California, San Diego, home buyers who took out a mortgage paid an average 11% over what all-cash home buyers paid for a home (which means you could make about 11% less selling your home for cash).

Real estate investors and iBuyers will usually try to buy your home for cash below market value so they can turn around and sell it for a profit. 

Tomas Satas, a real estate investor/flipper and founder and CEO of Windy City HomeBuyer, an iBuyer based in Chicago, says the maximum he pays for a cash deal for a home is 98% of the listing price.

“This is for a property that I am not going to have to rehab before I can sell it,” Satas says.

Rinal Patel, a licensed Realtor based in Philadelphia, says that while you may have to accept a lower selling price if you choose to sell your house as is for cash, you will avoid paying a real estate agent’s commission (6% is standard) and traditional closing costs (typically 3-6% of the home price). 

Some iBuyers do charge a commission fee to cover the eventual closing costs involved in selling your home. For example, Offerpad’s service fees range from 4-7%.

“If you’re looking to sell your home fast and don’t mind a lower price, selling for cash may be the way to go,” says Patel.

Where and how to sell used furniture online or locally

How do you negotiate a cash offer on a house?

If you don’t believe an initial cash offer is fair, you can negotiate with the buyer to arrive at a price that works for both of you. For example, Offerpad allows you to discuss with your Offerpad advisor why you think your home is worth more and try to negotiate a higher price.

Bill Manganaro, a real estate agent and investor in Columbia, Tenn., says a seller negotiating a cash offer on their house should aim to get enough money to cover what’s left of their mortgage. He says cash buyers typically look for homes that would be a good flip, so they have to determine the cost to fix the home, put it on the market, and sell it at a profit. 

“Based on these costs, we can arrive at a fair offer amount to present to the seller,” he says. “Whoever the buyer is, if he’s ethical, he should never make his offer based on how desperate a seller is to sell.”

Who buys houses for cash?

There are several types of cash buyers: 

• iBuyers – These are companies, like Offerpad, that buy houses for cash directly from homeowners and sell them for a profit. 
• Investors – Real estate investors might work on their own or as part of a team of investors to purchase properties and either sell them as is, rehab or “flip” them, or turn them into rental properties.
• Traditional cash buyers – These are buyers who can afford to buy a home outright without taking out a mortgage. They might be looking to buy the home as a primary residence or vacation property. 

Are companies that buy houses for cash legit?

“We pay cash for your house.”

“We buy ugly homes.”

“Cash 4 homes.”

There are many quality local real estate investors who will pay cash for your home.

Offerpad and some of its competitors are legit, as are many local investors. If you plan to sell to a cash buyer, read previous customer reviews to ensure you’re selling to a reputable company or person. 

Sell house for cash? Pros and cons

Selling a house for cash isn’t for everyone. Here are some pros and cons to selling your house for cash: 

6 pros of selling your house for cash

1. Selling your home for cash is nearly always faster than selling on the market — there is one offer, and no financing required. “Financial distress typically comes with a tighter timeline and doesn’t allow for a financed sale,” says Andy Kolodgie, owner of The House Guys in Virginia. “If a foreclosure or tax sale is set to take place in two months, a financed purchase will not occur in time. This is where selling your home for cash can provide value with a faster close.”

2. You only negotiate with one party: The buyer. If you put your home on the market, you likely have to make concessions with the real estate agent and negotiate with one or more offers, as well as deal with the lender, inspector and appraiser.

3. It’s easy — you don’t have to clean up, fix up, repair or show a home if you are selling for cash. No open houses, keeping the yard kept or the rooms tidy. The buyer likely an investor with plans to tear down, renovate or otherwise has plans for what they are buying. Sold!

4. No dealing with a lender, and financing that can fall through. “When you sell a house for cash, you avoid the complications that come with a traditional home buyer’s loan application,” says Chris Chavez of DFW Fast Home Buyers in Fort Worth, Texas. “Your buyer may not get the loan approval when it was anticipated or they may change their mind altogether. Since most cash buyers use their own cash to buy houses, we can close quickly and aren’t at the mercy of banks. This means a faster closing with less hassle than going the traditional route.”

5. Selling a home quickly might save money — especially if you do not live there. Each month that goes by without a sale means another payment for mortgage, taxes, utilities, yard maintenance, and lost interest on any profits!

6. You are behind on mortgage payments or taxes and a quick sell will help save your credit score.

3 cons of selling your house for cash

1. You will likely get less money for your home. Most cash buyers want to buy your home below market value so they can turn around and sell it at or above market value. 

2. You may have to pay some fees. Offerpad, for example, charges service fees ranging from 4-7% to cover the closing costs involved in eventually selling your home. 

3. Some cash buyers may request repairs or lower the offer price on your home before the sale is finalized based on an inspection of your home. Some cash buyers only want to buy homes that require minimal repairs.

3 ways to avoid foreclosure

If you are behind on your mortgage, or otherwise worried you can’t afford your home, there are ways to avoid the bank declaring your house in foreclosure and taking the property from you:

Forbearance

If your lender believes that you have a valid reason behind the missed payments (medical emergency, job loss), it may grant you a forbearance: a repayment plan that temporarily lowers or suspends your payments under the agreement you will stick to the new payment plan.

Mortgage Modification

Mortgage modification allows you to refinance your loan or extend its term to allow for lower monthly payments.

A repayment plan may also include the regular monthly mortgage payment plus a prorated amount of arrears be paid each month.

Reinstatement

Reinstatement lets you pay back mortgage in one, lump-sum payment (which may include any interest and penalties) by a specific deadline.

Reverse mortgage

f the homeowner is at least 62 years old and there is enough equity in the home to cover the defaulted amount, you may be able to get a reverse mortgage. The basics of a reverse mortgage involve a lender taking on your mortgage and paying you a lump sum, fixed monthly payment, or line of credit for the value of the equity in the home, minus interest and fees. A reverse mortgage allows homeowners aged 62 or older to tap into their home’s equity without making monthly payments. 

The loan amount is based on the value of the home, with no monthly payments required. Instead, the loan is repaid when the homeowner sells the home, moves out, or passes away. Reverse mortgages can help supplement retirement income, but it’s important to remember that the loan balance increases over time due to interest. Additionally, homeowners are still responsible for maintaining the property and paying taxes, or the loan could become due earlier than expected.

The entire loan balance then becomes due when the borrower dies, moves out permanently, or sells the home. 

Refinance

If you have equity in your home, a refinance may lower payments, net you a cash payout you can use to catch up on missed payments, and otherwise make your house more affordable.

Short refinance

A short refinance is when the bank forgives a part of your debt and refinances the remaining debt into a new loan. 

Sell your home

Of course, if you can’t afford your home, you can always sell before you fall behind on payments and ruin your credit.

Frequently asked questions about selling your house

Who benefits from selling a house for cash?

Manganaro says the people who benefit the most from selling a house for cash are people in some sort of distress, whether they’re facing foreclosure, divorce, or bankruptcy — or have an old home that needs a lot of repairs.

“Or maybe the house was inherited and the new owner couldn’t or didn’t want to care for the property and just wanted to get rid of it,” Manganaro says.

Is it wise to sell your house for cash?

For many sellers, especially those who need to get money quickly, a cash sale can make sense. Do your homework first!

Single mom $500 stimulus grant

Is it quicker to sell a house to a cash buyer? 5 tips for selling to a cash buyer

1. Check the online reviews of the buyer, including Better Business Bureau, Yelp, as well as ask around on local Facebook groups, Nextdoor, and your local friends and neighbors.
2. Some agents recommend at least trying to sell your home on the open market first — either with an agent or for sale by owner.
3. Before agreeing to a sale, require the buyer provide proof of funds, as well as an Earnest Money Deposit (EMD) — funds in escrow while the deal closes.
4. Beware of very high offers. “An investor may offer way over the home’s value to lock you in with them only to bring an inspector through and severely lower the price,” says Kolodgie, who is a real estate investor. “You’re then stuck with that investor even though their offer is now the same as all the rest you previously received.
5. Get multiple quotes, including from iBuyers like Offerpad and Opendoor, as well as local cash investors.

Is it better to sell a house for cash?

Most homes benefit from being sold on the market with the help of a realtor. However, there are some houses, and some sellers, who should consider a cash sale to a quality buyer or investor.

• Your house is in need of major repairs, you have few interested buyers, in part because no bank will give anyone a mortgage for your home.
• You are behind on mortgage payments, are facing a tax lien or are already in foreclosure.
• You are going through a divorce, and selling your house for cash makes the divorce settlement fast and easy, and helps pay for a new life for both of you.
• You need the money quickly.
• You don’t have the time, inclination or patience for showings, negotiations or contingencies.
• You’re not getting any regular offers, and tax and mortgage payments are accruing. In other words, you don’t have many other choices.
• You are eager to buy another property, and without a fast cash sale of your current house, you may miss out on your dream home.
• There are emotional reasons you need to get out of a property quickly: Maybe you are selling a home you inherited and need to settle a loved one’s estate without family drama, your relationship ended and you want to settle any debt owed to your ex, or you have a business debt that needs paying.

Can you sell a house for cash without a Realtor?

Yes, you can sell a house for cash without a Realtor, either as a For Sale by Owner seller or in a direct sale to a company that buys houses for cash. 

Bottom line: What is the fastest way to sell a house for cash?

There are just as many shady cash real estate investors as there are legit ones. iBuyers are increasingly popular, thanks to their easy customer experience and streamlined technology. A quality local investor can be a great option, especially if you live outside of a metro area served by an online cash home buyer.

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Selling a watch — or any fine jewelry, for that matter — can be intimidating.

Traditionally, there’s the process of finding a qualified appraiser and figuring out where to sell it.

And then there is the question about whether you trust the quote your local jeweler or watchmaker gave you.

Are you getting ripped off?

Fortunately, there are options today that make it easier and safer than ever, without ever having to leave the house.

You can even get cash for your watch without selling it by using it as collateral to secure a personal loan from a company like Diamond Banc.

Get a jewelry loan through Diamond Banc in 24 hours or less >>

Bottom line: Best place to sell a watch?

There are ways to get the most money for your timepiece, quickly and safely. My No. 1 recommendation is Worthy.com, an online auction platform rated B+ by the Better Business Bureau.

Read about Worthy in this review.

Where to sell watches? Worthy

Worthy is an online marketplace, and each watch auction attracts bids from hundreds of qualified buyers all around the country — if not world. Worthy works with leading watch experts to accurately value each timepiece, takes professional, 3-D photographs using specialized digital equipment, and merchandises each watch. You control the reserve price, and are paid within a few days of the sale. 

Most of Worthy’s buyers prefer brands whose watches retail for tens of thousands of dollars (and sometimes more).

Though Worthy.com is my top choice, there are other places to sell a watch to consider. 

• Where to sell watches
• Top watch buyers

Where to sell watches

Today, you have a few choices to sell your watch:

1. Sell watches online

Sites including Worthy, WPDiamonds, and other online marketplaces and jewelry auctions can help you get a fair price for your watch. Benefits of selling online include ease of use, transparency and privacy — you don’t have to be embarrassed walking into a local jeweler or pawn shop.

Online platforms also typically have lower overhead than brick-and-mortar jewelers or other businesses, so they have the margins to offer you higher prices — and are incentivized to do since the competition online is higher than in local markets. 

Other places that buy watches include:

• tourneau.com
• thewatchbox.com
• watchpayer.com

2. Search for “sell watches near me” or “watch buyers near me” 

You may find reputable jewelers, pawn shops, watch buyers and retailers in your area via Yelp, Google or other listings. One way is to use “near me” in your searches to find local watch buyers. You might also want to ask around for a recommendation.

3. Scrap metal buyers

If you have a gold watch that can be melted for scrap, send it to CashforGoldUSA.com, which has an A+ with the Better Business Bureau, pays within 24 hours and pays a 10% bonus.

CashforGoldUSA buys all kinds of watches, gold and silver jewelry, coins and silverware as well as diamond rings, necklaces, bracelets, earrings and other jewelry — and they pay within 24 hours of receiving your item.

4. Pawn shops

You may consider pawning your watch to a pawn shop near you, although it may be better to sell your jewelry online. Online gold buyers may pay more, as pawn shops typically pay 25% to 60% of the retail value of your item. 

5. Consignment shops 

Jewelry stores and antique shops both may purchase your estate and vintage jewelry and watches — either for a flat rate or on a consignment agreement.

Consignment shops typically accept an item for consignment and then pay the original seller a percentage of the sales price if and when the item sells. Online consignment sites like TheRealReal deal in fine jewelry and higher-end watches. 

Expect consigning your watch to take longer than pawning and direct sales or online sales.

6. Facebook Marketplace

Facebook Marketplace has become a bonanza of buying and selling any number of goods and services, including timepieces. Simply post your watch with a few pics, a thorough description and suggested price — and then try to figure out which responders are scammers, crazy or potential buyers!

7. Give it away 

You may want to give your watch to a family member or close friend, leave it to them in a will or your estate plan, or donate it to a charity thrift store. 

Watch buyers near me and online

Top watch buyer: Worthy.com 

Worthy is a leading marketplace that will do the heavy lifting of marketing your watch or fine jewelry to its network of professional buyers. Worthy.com will also have your watch authenticated by Watch Central, a partners specializing in timepieces.

Worthy.com chooses which brands to buy based on their buyers’ preferences.

Here’s a list of watch brands that are in demand by Worthy’s buyers:

• Alain Silberstein
• Breitling
• Glashütte
• Lange
• Patek Philippe
• TAG Heuer
• Audemars Piguet
• Bulgari
• Harry Winston
• MB&F
• Piaget
• Tudor
• Bell & Ross
• Cartier
• Hublot
• Montblanc
• Richard Mille
• Ulysse Nardin
• Blancpain
• Chopard
• IWC
• Omega
• Roger Dubuis
• Vacheron Constantin
• Breguet
• Franck Muller
• Jaeger
• Panerai
• Rolex
• Zenith

In fact, unlike retailers who carry these brands, many of whom sell only newer watches, Worthy’s buyers actually prefer vintage or antique versions of these big names – particularly ones in excellent condition.

The rarity ups the value, which increases the amount you’ll be paid. So, that watch of your grandfather’s … ?

Once you decide you want to part with your watch, go to Worthy.com. 

1. Go to Worthy.com
2. Get an online quote from a site like Worthy to understand if their estimate is in line with a price you feel comfortable with.
3. If they and you are interested in proceeding, Worthy sends you a free FedEx mailer overnight. 
4. Send in your watch, 100% insured up to $100,000 by Lloyds of London. 
5. Your timepiece is authenticated by Central Watch, a New York City watch repair, appraiser and buyer founded in 1952.
6. Worthy will professionally clean and digitally photograph your watch in special, high-definition images. You set the minimum price you are willing to sell.
7. Your auction goes live to hundreds of vetted buyers globally.
8. Get paid within as little as 24 hours by Paypal, or by check mailed to your home. Total sale time from sending in your timepiece to getting paid is about two weeks.

Worthy has a B+ rating with the Better Business Bureau.

When your watch or other jewelry sells, Worthy.com takes a fee of up to 22 percent of the sale price.

That’s something to keep in mind, but remember that anyone selling anything for you is going to take a cut.

Worthy scores points with its transparency.

If your jewelry doesn’t get sold for at least your reserve price, Worthy will return it for free, and you don’t wind up paying anything before the sale.

Second best watch buyer: myGemma

myGemma, formerly WP Diamonds, specializes in diamond jewelry, as well as luxury timepieces, handbags, and accessories. Their model is straightforward purchases, especially if you already have receipts or lab reports from your item.

Read our myGemma review.

Scrap gold watch buyer: CashforGoldUSA 

CashforGoldUSA specializes in buying all things gold, silver, diamond, jewelry and coins. Watches that are best sold for scrap gold are a good fit.

Read our CashforGoldUSA review.

Where to sell watches FAQs

Can you sell a watch to a jeweler?

Jewelers often appraise and buy fine and luxury watches of all kinds — it really depends on the jeweler and the market. A jeweler can be a good place to start to learn about your timepiece and get an initial offer. A jeweler is also helpful in providing an appraisal for insurance purposes.

Where is the best place to sell a watch?

Many people chose to sell their watch locally to a jeweler or watch collector who they know and trust, or who comes recommended.

There are many benefits to using one of the reputable online watch buyers. Online buyers tend to work in large volume with connections globally — which is really the scope of the international watch market.

Watch sellers find it useful to easily check sites like Better Business Bureau and Trustpilot for online businesses since the established ones can have hundreds or thousands of reviews and ratings.

Online businesses potentially can work on smaller margins, and pass those savings on to the seller, given they are not beholden to expensive retail real estate.

Further, many watch and jewelry sellers prefer the privacy and anonymity of selling their watch for cash, from home where there is no chance of running into a neighbor during the transaction!

Where can I sell my Apple watch?

Apple and other digital watches fall into another category entirely, though you can certainly resell your Apple watch for cash. eBay, Gazelle or even locally on Craigslist or Facebook Marketplaces are good places to sell watches. Pawn shops and consignment stores are also places to sell electronic watches.

23 sites like Craigslist to buy or sell stuff in 2023

If you live with consumer debt, you are not alone. According to Federal Reserve data¹, U.S. households have on average $6,300 in credit card debt and $33,090 in student loans, while the Consumer Financial Protection Bureau reports that a full 52% of credit bureau filings are for medical debt. Single mothers are especially likely to struggle with poverty.²

Mama, if you find yourself drowning in debt, rest assured you are not alone. But don’t use this fact as an excuse not to work like crazy to pay off your debt. If you live month-to-month owing others money, then the money you earn is not really yours. You are enslaved to your debt.

 You are not the only person asking:

• How do I get out of debt if I’m broke and have no money?
• How do I get out of debt so I can stop living paycheck to paycheck?
• How do I get out of debt with no money and bad credit?

This post gives a 9-step plan for reducing and paying off your debt.

Here’s what’s inside:

How to get out of debt when you are broke

1. List your debts, expenses, and income
2. Research lower credit card rates and refi debt
3. Negotiate interest rates with creditors
4. Create a monthly budget of all your expenses and debt payments
5. Choose a method for paying off debt: Debt snowball vs avalanche
6. Sell stuff to earn money to pay off debt
7. Get a side job, and put that money towards debt
8. Consider professional help to pay off debt
9. Be honest with yourself about your personal finances

FAQs about how to pay off debt on a low income

• How do I get out of debt if I have no money?
• How do I get out of debt if I live paycheck-to-paycheck?

More debt relief resources for single moms

How to get out of debt when you are broke

As you figure out how to get out of debt on a low income, keep in mind that not every step on this list will reflect your situation. Follow as many as you can to get the best results:

1. List your debts, expenses, and income

Time to look the personal finance monster in the eye and lay out the FACTS.

Collect statements for each and every one of your debts: credit cards, medical bills, student loans, car note, mortgage, home equity line, personal loans from your parents or cousin.

Create a list of all your debt, including interest rates, monthly minimum payments and any deadlines.

My favorite app to help make this as simple as possible is You Need A Budget (YNAB). This app automatically pulls in all your income, debt, and expenses from your bank accounts. From there, you can set goals — and reach them! No matter what your financial goals are, it is so handy, so satisfying to see all these numbers in one place, and watch them move to meet your goals, day after day.

Don’t know what debt you have? You aren’t alone:

I have debt, but don’t know where it is. How do I find it?
byu/dumbandconcerned inpovertyfinance

Here’s a tip for what to do:

2. Research lower credit card rates and refi debt

Here are the most common and easiest ways to lower your debt payment and pay off debt quicker:

Refi your student loans:

There are many options to refinance your private and government student loans. See what you student loan refinance options are.

Refi your auto loan:

Can’t afford your car payment? See if you qualify to refinance for a lower payment.

Auto Credit Express is A+ rated with the Better Business Bureau:

• Average Saving:  $1,700 or $143 per month
• Minimum Credit Score: 525
• APR from 3.99%
• Loan Amounts: $5,000 – $45,000
• Vehicle Criteria: Under 10 Years/150K Miles

Get a refi quote from Auto Credit Express in 30 seconds >>

Refi your mortgage:

Chances are, mortgage rates have fallen since you first got your mortgage.

Transfer your credit card debt to 0% or lower APR:

See if you qualify for a 0% balance transfer credit card for a limited period, such as three or 12 months. Depending on your credit score, you may qualify for credit cards with lower rates long-term. This is a great way to pay off debt, as you save on interest along the way.

It only works if you are very organized, read all the fine print, and make sure you pay the premiums on time, and either pay off the balance or transfer the balance before the end of the promotion period.

But be honest with yourself: If you are not good with this kind of bookkeeping, this might not be a good option for you.

3. Negotiate interest rates with creditors

How to lower interest rates on credit cards

Another way to get a better rate on your card is to call your current credit card company and simply ask for a better rate. Here is a script:

“Hi, as you can see I am a longtime cardholder, and I love using your product. I am committed to paying off my debt and improving my credit history, and I’d love to stay with you. However, I need a better rate on my balance. Based on my research, I can get a [insert honest quote you received from another card] rate. Can you match it or do better?”

If your current card refuses to give you a better rate, research a 0% balance transfer credit card with another company.

Negotiate medical and other debt

Call the holder of any outstanding medical bills and negotiate.

4. Create a monthly budget of all your expenses and debt payments

Figure out how much you can afford to pay toward your debt by setting up a budget.

It is time to get serious, cut out any extra spending, and lower your overhead. Remember: Overspending is how you got in this pickle in the first place. Imagine how AMAZING it will feel to be debt-free! Check your student loan information at the National Student Loan Data System.

5. Choose a method for paying off debt: Debt snowball vs avalanche

When it comes to eliminating debt—whether credit cards, personal loans, student loans, or other debt—there are a number of popular strategies that you can employ. Two of the most common strategies, which you may have heard of, are the Debt Snowball and the Debt Avalanche. 

While both are highly effective, each is better suited to helping you achieve different goals. Below, we take a look at each option to understand which will best help you reach your money goals. 

16+ financial help resources for single moms

What is the debt snowball method?

Debt snowball is a debt repayment method to pay off credit cards or loans with the lowest balances first. 

Finance guru Dave Ramsey made the debt snowball method popular, and for good reason: The advantage is that you get the psychological and emotional thrill of paying off accounts quickly. Imagine if you could actually remove a whole credit card account from your life?

Here is how to use the debt snowball method:

1. List your debts from smallest balance to largest balance — regardless of interest rate.
2. Make minimum payments (set up autopay) on all your debts except the debt with the smallest balance.
3. Pay as much as possible on your smallest debt.
4. Repeat until each debt is paid in full.

In the debt snowball method, you start by paying off the loan with the lowest balance first. This is beneficial for a number of reasons:

1. First, paying off any debt will give you a psychological “win” that you can use to propel yourself forward and continue hitting your goals. It stands as proof: You can do this! By paying off the debt with the lowest balance first, you’re getting this satisfaction quicker, which can help you stick with it for the long term.
2. Second, paying off the lowest balance will allow you to free up money in your budget. You can use this money to live a more comfortable life—or, ideally, to continue paying down your remaining debt.

How it works:

1. First, list out all of your debts, from smallest balance to largest balance. Ignore any other factors, such as interest rate.
2. Continue making your regularly scheduled minimum monthly payments on all of your debts. You don’t want to fall behind on anything—that can destroy your credit score!
3. Each month, pay as much extra as you can on the loan with the smallest balance. This will drive down the balance, saving you money in interest payments.
4. Once the debt with the lowest balance is paid off, take note of the minimum monthly payment you were paying toward it. Roll that amount over into the loan with the next lowest balance, so that you’re paying more toward it. Continue paying as much extra each month as possible.
5. Repeat until you have paid off all of your debts.

The method gets its name from the way that a snowball continuously grows as it rolls down a hill. As you pay off each debt, you free up more money each month that you can apply to the next debt. By the time you’ve got a single loan left, you’ve got the collective power of all of the money you’ve freed up, like a runaway snow-boulder!

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Debt snowball example

In the example below, this mom has $44,500 in combined credit card, car, and student (“Other”) debt.

Using the snowball debt payment method, you can see here how quickly she was able to pay off her debt, compared with if she were to simply pay the minimums on each of these four accounts:

In the example below, this mom has $44,500 in combined credit card, car and student (“Other”) debt:

Using the snowball debt payment method, you can see here how quickly she was able to pay off her debt, compared with if she were to simply pay the minimums on each of these four accounts:

Using the snowball debt program, she slashed her debt to $0 in 3 years and 7 months, compared with 13 years!

This quicker, more aggressive repayment saved her $4,853 in interest.

What is the debt avalanche method?

In the debt avalanche method, you instead start by paying off the loan with the highest interest rate first, regardless of how large the balance is. 

The key benefit behind the debt avalanche is that by paying down the balance with the highest interest rate first, you are saving the most money over the life of the loan. While you won’t necessarily have the psychological perk that comes with paying off a low balance, it can still be incredibly empowering to know that you’re sticking it to the banks and reducing their ability to profit off of you.

How it works:

1. First, list out all of your debts, from the loan with the highest interest rate to the loan with the lowest interest rate. A budgeting tool like YNAB (You Need A Budget) can be incredibly helpful. 
2. As with the debt snowball, continue making your regularly scheduled minimum monthly payments on all of your debts.
3. Each month, pay as much extra on the loan with the highest interest rate. As the balance decreases, you’ll pay less in total interest over the life of the loan.
4. Once the debt with the highest interest rate is paid off, note the minimum monthly payment that you were paying on it, and apply that towards the loan with the next highest interest rate. Continue paying as much extra each month as possible.
5. Repeat until you have paid off all of your debts.

As you pay off more and more of your debts using this method, the amount that you save each month will compound into an avalanche of savings.  

How to make money as a teenager: 25 best ways to earn cash this year

Debt avalanche example

Here is an example of the avalanche debt method:

A single mom I know budgets $500 toward debt payoff. She uses YNAB to document her debt goals and strategy, and to create a budget. Her loans include:

• $1,000 due on a credit card debt with a 20% interest rate
• $5,000 left on her student loans, with an 8% interest rate
• $1,250 monthly car payment at a 6% interest rate

To keep things simple, let’s say each debt has a minimum monthly payment of $100.

This mom will set her car and student loan payments to the minimum of $100 each.

The remaining $300 of her monthly debt budget is devoted to her highest-interest debt: the credit card at 20%. The card debt will be entirely paid off by the third month. Whoo hoo!

Now, the extra $300 (plus the current $100 minimum = $400 monthly) goes toward slashing the second-highest interest-bearing debt: the student loans. That will be paid off after 1 year and 1 month. Yay!

Finally, all $500 goes to the debt with the lowest rate of interest, the car loan, which will be paid off three months later.

Congratulations, mama!

Debt snowball vs. debt avalanche

In choosing which method you pursue, it’s important to know the personal goals behind your debt elimination journey. Specifically, what are you trying to accomplish?

The debt snowball method might be right for you if:

• You want a quick psychological win
• You need to prove to yourself that you can pay off your debt
• You need to free up money in your budget for other expenses

The debt avalanche method might be right for you if:

• You don’t mind potentially going years before you pay off your first balance
• You want to save as much money as possible
• You have a moral disposition against interest

It’s also important to note that you don’t necessarily need to commit fully to just one method. If you decide to pursue the debt avalanche method, for example, that’s great.

But if you’re working on it for two years and begin to feel burnt out or weary, go ahead and pay off the loan with the lowest balance! It’ll give you the boost that you need to return to the avalanche method and commit for the long term. 

Additionally, there may be other factors that you might want to take into consideration. For example, if you’re paying off your student loans, do you have a mix of unsubsidized and subsidized federal loans?

If so, paying off your unsubsidized loans, which come with fewer benefits, may be the wiser move—regardless of interest rate or balance.

Ultimately, snowball vs. avalanche debt payoff is about which one feels best for you, and which plan you are more likely to stick to!

6. Sell stuff to earn money to pay off debt

As long as you are cleaning out debt, you might as well also cleanse your closets, drawers, garage and basement. Declutter your home, sell unwanted stuff, and put that extra cash towards your debt paydown program. Here are some things you can sell:

• Gold, silver, and diamond jewelry
• Scrap gold
• Silverware
• Old electronics, including iPhones, iPad, books, DVDs and CDs
• Unused designer and luxury clothes, shoes, watches, handbags and accessories

7. Get a side job, and put that money toward debt

When the loans are all put to bed, this new income stream can go toward savings, investments, vacations, a home — the sky is the limit!

Here is a roundup of some of my favorite high-paying work-at-home jobs that can be done part-time or full-time, and online remotely.

Hiring a professional resume writer or resume editor is a huge advantage. A quality resume service will help you not only create a professional resume, but also help you frame your experience and goals in a way that you cannot do on your own. It always helps to have a second set of trusted eyes when it comes to important career moves.

Going back to school? Learn about 49 grants and scholarships for single moms.

8. Consider professional help to pay off debt

If you’re totally overwhelmed with the debt-payoff process—or truly believe that you cannot dig out of debt on your current income—professional services can help.

A professional debt-relief service can help if you have:

• Large sums of medical debt that you have no immediate way of paying off
• So many loans and credit cards that you can’t manage on your own, and you may even be considering a hardship loan just to stay afloat
• Poor credit, which means high interest rates, which makes payoff even harder, and you don’t know where to start to stem the chicken-and-egg problem

Debt relief services will negotiate down some of what you owe in exchange for a fee of 25% or more. The sum that is reduced is likely taxable, but it may still be a good deal. Here are some of the more reputable tax relief companies:

By comparison, a debt consolidation company will consolidate all of your debt into a single payment with a lower interest rate than all of your debt combined. The benefit is a shorter repayment term, fewer individual bills to manage, and less interest paid over the long-term.

Meanwhile, if you have poor credit, a credit repair company can help by disputing old or erroneous negative credit items, and counsel you to repair your credit history and score — which will help you qualify for a mortgage, car loan or better terms on existing credit:

Alternatively, if you only want to speed up the process of paying off your credit card debt,  you can opt for credit card consolidation, unify the debt from different card issuers, and pay them off slowly.

Correct errors on your credit report

Legally, every person in the United States is entitled to correct errors on their credit report. It is not uncommon for your score to be hurt by old debts that have actually been paid off (but still appear on your report), debts or bankruptcies that are not yours, or legitimate debts that erroneously are reported multiple times.

Getting these red marks off your credit report is within your legal rights, but it can be a huge pain in the butt. If you are strapped for time and patience, it can be worth the investment to pay a reputable credit repair company to take over this task for you.

A credit counselor can help. Start your search for a reputable credit counselor at the National Foundation for Credit Counseling.

9. Be honest with yourself about your personal finances

If you are stressing about your debt and credit, likely you are avoiding the facts of your financial situation. Below I will show you how to easily manage all your debt, bills and income, but first you have to deal with the emotional side of this problem.

Facts are that financial stress is REAL, and it takes a toll on your relationships, physical health and mental health. You may join those of us who struggle with deep money issues stemming from childhood, and therapy may be in order.

• Be honest with yourself about how your money situation makes you feel. Living paycheck-to-paycheck is really stressful, right? Moving money around each week to make sure some bill clears is a shameful waste of energy and time. Living beyond your means is scary. Not having control of your money is embarrassing. Own all those feelings. They are normal, and they are real.
• Face the facts about how you got here. It is easy to blame your parents for not teaching you about money, or the federal education system for failing to make personal finance mandated schooling, or banks for ripping people off, or your boss for underpaying you, or your ex for screwing you in the divorce, or your friends for pressuring you to overspend.
• Ultimately, you are responsible for your money. You are smart and resourceful, and trust me: dumber people have gotten out of debt and even gotten really stinking rich. You can figure this out, and I will help you. But first, you have to own your responsibility in this mess.
• Focus on the future. Think about how incredible it will feel to have all your bills set up on autopay, and never think about them because there is plenty of cash in the bank. Imagine how amazing you will sleep knowing you and your kids’ future is secure. Visualize how powerful you are each day as you make decisions about your career, your children, your home and your life.

FAQs about how to pay off debt on a low income

How do I get out of debt if I have no money?

Here are your options to get out of debt:

• Budget, cut back your expenses and pay off your debt over a long, systematic term on your current budget 
• Find ways to refinance and consolidate your current debt
• Earn more money while maintaining your lifestyle, putting any extra money towards your debt first, even before savings and investments.

If you have reason to believe that you truly cannot ever get out of your personal debt, consider bankruptcy. 

How do I get out of debt if I live paycheck-to-paycheck?

If you feel you don’t have any extra money to pay off your debt, your options include:

• Refinance your credit card, student, auto and mortgage debt.
• Lower your monthly bills. This might include moving into a lower-cost home, getting a roommate, refinancing your mortgage or car, canceling some subscription services, adopting a more affordable lifestyle (less eating out, less shopping or vacations), as well as refinancing your credit card debt, tax or student debt. 
• Earn more. Can you negotiate a raise, get a new job, start a side business or side hustle? 
• In extreme situations, you may qualify to discharge some of your debt through bankruptcy. 

More debt relief resources for single moms (and anyone struggling to make ends meet)

A credit counselor can advise you on your financial situation and debts and help you put together a feasible budget. The Federal Trade Commission³ suggests finding a reputable nonprofit organization that offers free credit counseling services to help you get on track.

Here are a few to research:

• American Consumer Credit Counseling — Offers a free debt counseling session
• National Foundation for Credit Counseling — Provides online resources to help you learn about the debt management process and connects you to certified financial counselors
• GreenPath Financial Wellness — Offers free debt and credit counseling by phone
• Debt Reduction Services — Shares do-it-yourself debt management tools but also offers a free session with a certified credit counselor 

You can also contact your credit union, church, or a local charity to ask about debt counseling services.  

Bottom line: Use these tools for how to get out of debt on a low income

The upside to the personal debt crisis is that there are tried and true methods for getting rid of it – and plenty of analog and tech resources to help. Even if you have a low income or are living on one income.

Here are some more resources if you have a low income:

Help for single moms: 16+ resources	$500 monthly single mom grant
Free laptops	Scholarships for single moms
Free car	Free Christmas gifts
Free smartphone	Free food
Free wifi	Free and low-cost prescriptions
Free formula	Free clothes
Free toys	Government assistance for single moms
Free gas	Free daycare
Free preschool	Free prescription glasses
10+ charities that help single mothers	Low-income home loans
Health insurance	How to use EBT on Amazon

---

SOURCES

1. “Changes in U.S. Family Finances from 2016 to 2019: Evidence from the Survey of Consumer Finances,” Federal Reserve Bulletin, September 2020, Vol. 106, No. 5. Board of Governors of the Federal Reserve System. federalreserve.gov/publications/files/scf20.pdf
2. “The Changing Profile of Unmarried Parents,” by Gretchen Lingston. Pew Research Central, April 25, 2018. pewresearch.org/social-trends/2018/04/25/the-changing-profile-of-unmarried-parents/
3. “How To Get Out of Debt,” Federal Trade Commission Consumer Advice. https://consumer.ftc.gov/articles/how-get-out-debt

Single women accounted for 20% of first-time, and 18% of repeat home buyers in 2021, according to the National Association of Realtors. That same year, a Freddie Mac study found that 58% of single female head of household renters didn’t believe they would be able to afford a home.

Even though the journey to homeownership has its challenges, it is possible for single moms to buy a home with the right knowledge and resources, including steady employment. And home ownership has many benefits, like equity and tax deductions. However, while preparing for homeownership, some individuals may explore short-term financial solutions to manage temporary expenses or cash gaps before securing long-term mortgage financing.

Keep reading to discover affordable mortgage loan options and education programs to help single moms with aspirations of homeownership:

How hard is it to buy a house as a single mom?

How can a single mom afford a house?

Home loans for low income

1. HomeReady® Mortgage from Fannie Mae
2. FDIC loans via Operation HOPE Home Buyers Program
3. FHA Home Loan
4. Home Possible® home loan from Freddie Mac
5. Fannie Mae
6. VA Home Loans
7. USDA Single Family Housing Direct Home Loans
8. USDA Single Family Housing Guaranteed Loan Program
9. Habitat for Humanity

Home-buying programs

• Department of Housing & Urban Development (HUD)
• Public housing authority
• The Chenoa Fund
• Community Seconds

FAQs about buying a house

Bottom line: Home loans for single mothers are available, along with assistance

How hard is it to buy a house as a single mom?

Let’s face it. If you’re a single mom, it can be hard to buy a home. The most obvious hurdle is your financial situation, since you’ll be buying a house on one income. 

And even though the gender pay gap is narrowing, women are still earning less than men according to the U.S. Census Bureau. Women consistently make 30% less in annual income than men, and that number creeps upward as women age.  

“Buying a home is never an easy process, and being a single mom makes it more difficult — but not impossible,” says Zackary Smigel, real estate expert and creator of the real estate education program, Real Estate License Wizard.

Smigel, a licensed realtor and mortgage broker, points out that single moms with low incomes can take advantage of home-buying assistance programs. 

These programs often have low loan interest rates or offer grants that don’t require repayment.

Check out our post on how to buy a home as a single mom.

How can a single mom afford a house?

When you are ready to buy a home, you have many options to help you become a homeowner.

These are some tips to afford a home as a single mom:

• Search for programs that help you buy a home at a discount like HUD’s Good Neighbor Next Door or through the HUD home inventory. 
• If you need down payment or closing cost help, check out programs like The Chenoa Fund and Fannie Mae Community Seconds. Research HUD home buying programs and check with your state housing finance authority (HFA).
• Apply for low-income home loans such as Freddie Mac Home Possible and Fannie Mae HomeReady. You can find these programs by attending home buying seminars, talking to lenders and real estate agents, or searching for “low income mortgages” online.
• Connect with organizations and nonprofits like Habitat for Humanity which builds affordable homes for qualified applicants who are willing to help build the house and can pay a mortgage that does not exceed 30% of the person’s income.

If you have another single friend or family member who is looking to buy a home, you can also discuss pooling your resources to buy one together.

You can also create a housing fund and ask friends and family to contribute to it in lieu of gifts for birthdays and holidays. Sites like GoFundMe make it easy for people to help.

Low-income home loans

There are a lot of home loan options available for low-income households. Learn more about these helpful programs so you can choose the best fit. Ask your preferred lender which programs they offer for creditworthy, low-income borrowers.

1. HomeReady® Mortgage from Fannie Mae

As a borrower, your income must be 80% of the area median income (AMI). You can use the Fannie Mae AMI lookup tool to check your geographic area’s AMI.

You’ll need a minimum 620 credit score to apply, though 680 can unlock better rates. Down payment options are as low as 3% and funding from relatives, grants, and Fannie Mae Community Seconds is allowed. There are no geographic restrictions. 

You can get reduced mortgage insurance that cancels when the loan balance falls below 80% of the loan-to-value (LTV) ratio (the amount of the mortgage versus the value of the property). Finally, you must take the Fannie Mae HomeView online course or an approved alternative HUD-approved course to be eligible. 

2. FDIC loans via Operation HOPE Home Buyers Program

Operation HOPE Home Buyers Program helps low-income home buyers through FDIC-approved loans, down payment assistance, and first-time buying assistance.

Operation HOPE offers multiple programs to increase financial knowledge in underserved communities. Its first-time home buyer education program provides HUD-certified coaches to guide you through the home loan process.

You’ll get group training as well as one-on-one coaching that extends beyond the classroom. When you are ready to pursue an FDIC loan, your Operation HOPE team will continue to provide support. They can also connect you with other professionals along the way.

3. FHA Home Loan

Check into getting a Federal Housing Administration (FHA) loan, which offers lowered closing costs and down payments. The FHA offers fixed-rate loans available in 15- and 30-year terms nationwide.  

Borrowers enjoy low down payments and closing costs. It’s ideal if you have moderate to low income and a low credit score.

With a score of 500 to 579, you’ll need a down payment that is 10% of the cost of the home. At 580 or more, you’ll only put 3.5% down.

With an FHA loan, you must pay mortgage insurance, and if you put down less than 10%, you will pay it for the life of the loan. 

The property you want to buy must meet FHA eligibility requirements. For example, the FHA loan limit range for homes across the country is $472,030 to $1,089,300. You can check your specific area with this FHA lookup tool.

4. Home Possible® home loan from Freddie Mac

If you’re looking for low income home loans for single mothers, a Freddie Mac Home Possible mortgage could be right for you. With as little as 3% down, you can become a homeowner. To be eligible, your income cannot exceed 80% of the area median income (AMI).

Use the Home Possible Income and Property Eligibility Tool to look up a specific property’s AMI limits.

There are no geographic limits on loan amounts, and you can apply even if you do not have a bad credit score due to lack of credit history (though approval isn’t guaranteed). Mortgage insurance is required on one-unit properties, but once your loan balance is less than 80% of its value, it is no longer required. 

5. Fannie Mae

HomePath properties are Fannie Mae-owned homes offered to the public at a discount after the previous owner defaulted on a Fannie Mae-owned mortgage. These mortgages come with low down payments, renovation loan eligibility and closing cost assistance of up to 3% of the home’s purchase price.

6. VA Home Loans

If you are an active duty or reserve member of the armed forces, veteran, or eligible spouse, a VA loan could be the best way to go. If approved, you won’t need to provide a down payment or mortgage insurance. Plus, closing costs are kept to a minimum. There are no loan limits if you can afford the property.

The VA guarantees part of the loan and works with private lenders to offer affordable interest rates. The VA loan is available in every state and tribal lands via the Native American Direct Loan (NADL).

7. USDA Single Family Housing Direct Home Loans

The U.S. Department of Agriculture helps rural borrowers refinance their mortgages. This offer, in response to borrowers who did not have to pay a monthly mortgage because of COVID-19, helps keep payments affordable once they resume. 

These direct home loans are available for very low- to low-income borrowers who were approved for a mortgage payment stoppage due to COVID-19. You must meet or fall below the income limits for your area to be eligible. Your credit score is not a factor unless you have substantial federal debt.

8. USDA Single Family Housing Guaranteed Loan Program

The USDA Single Family Housing Guaranteed Loan Program offers a year-round application process. If you live in a rural area, this loan provides a way to purchase or build a home with no money down for qualifying applicants. The program offers 100% financing from approved lenders because it guarantees 90% of the loan.

To be eligible, you cannot exceed 115% of the area median income (AMI). You can use this USDA tool to check eligibility for properties and income. There is no set credit score, but you must show a history of making an effort to repay any debts you have.

9. Habitat for Humanity

Habitat for Humanity fixes up and builds affordable homes. The nonprofit serves 50 states and about 70 countries. If you are willing to take home ownership classes, volunteer at a Habitat ReStore, or help build your own home (or someone else’s), you could be one of the next Habitat homeowners.

To be eligible, you must demonstrate a need to secure safe housing and be able to make affordable monthly payments.

Are there any home buying programs for single moms?

In addition to low-income mortgage loans, there are also home buyer programs for single moms, which can help to find affordable properties and programs that offer mortgage assistance. Some lenders also offer low credit home loan options designed for buyers who are rebuilding their credit, making homeownership more accessible even if your score isn’t perfect yet.

Some of these federal, state, and nonprofit home-buying programs also educate you on the home-buying process from beginning to end. 

Check out the following resources for single moms:

Department of Housing & Urban Development (HUD)

You buy a home directly through HUD. In fact, a key purpose of HUD is to help more people become homeowners. 

HUD properties are lower priced because they are foreclosures or defaulted properties. They are owned by HUD as a result of a foreclosure on an FHA mortgage and are currently available in most states, although inventory changes constantly.  

To buy a HUD home:

1. Contact your local HUD counseling agency
2. Work with a lender to find out how much you can afford
3. Choose the right mortgage type based on your circumstances
4. Use the HUD inventory list to search for your new home
5. Make an offer and prepare for the closing upon acceptance

HUD offers an online homebuyer’s kit that details the homebuying process. If you need help or have questions, you can contact a HUD housing counselor. They offer free or affordable advice to guide you through the process.

Public housing authority

Your state housing authority may have leads on local homeownership programs. Some may be designed especially for single parents. These programs, run by HUD, usually require counseling for prospective homeowners.

For example, under the Section 32 homeownership program, a PHA may sell one or more units in a public housing development to a low-income family. Plus, the PHA can offer Capital Fund assistance to help the family buy the home.

The Capital Fund is administered by the Public Housing Investments (PIH) Office of Capital Improvements. Each year, it awards grants to PHAs so that they can assist prospective homeowners as well as improve and update public housing developments and management systems.

Other options include:

• Choice Neighborhoods Funds
• Rental Assistance Demonstration (RAD)
• Section 8 vouchers for mortgage payments

 Find and contact your local housing authority.

Free legal aid help

The Chenoa Fund

The Chenoa Fund is a government-chartered organization that provides up to 5% down payment assistance for those with a FICO Score of 600 or higher. The financial help can go towards a down payment, closing costs, prepaid items or you may direct funds to all three.

You are eligible for the best pricing if your income is less than 135% of your area’s median income.

The Chenoa Fund offers two options: a 10-year fixed-rate repayable loan or a 30-year forgivable loan. The 30-year loan has a 0% interest rate, requires no monthly payments and is forgivable under these conditions:

• A 3.5% loan is forgivable when you pay your mortgage on time for 36 consecutive months

• A 5% loan is forgivable after you make 120 payments on your primary mortgage.

Community Seconds

Community Seconds is a Fannie Mae-approved second mortgage that allows you to use the funds available from state and local governments as well as housing nonprofits to put together a down payment, get help with closing costs and even complete minor renovations.

Single mom home loans FAQs

Does my state have a homeownership assistance program?

Every state has some type of program to help homeowners — from government programs to private and nonprofit options. To find local help, start with a Google search on “homeowner assistance programs near me” or “first-time home buyer help in (your state).” 

Find state-based programs offering assistance with down payments, closing costs, and special financing options. 

How can a single mom build a house?

Check with organizations like Habitat for Humanity. They build houses with affordable mortgage terms. You can apply and have a chance to help build your own home.

The FHA and USDA also provide home loans you can use for new construction.

How can a single mom get home loans with bad credit?

If your credit score is bad, you’ll want a home loan that does not require a credit score or has options for low credit scores (less than 600).

For example, VA loans don’t require a minimum credit score or down payment, and FHA loans have options for single moms with a score of at least 500.

Home Possible® home loans from Freddie Mac also don’t require a credit score to apply.

How do I clean up my credit to buy a house?

A good credit score is important for buying a house. Fortunately, there are ways to fix bad credit. Here’s how to build your credit systematically:

• Keep an eye on your credit score and report. Once your score reaches 700 or more, move on to a regular, unsecured credit card — one with no annual fee, a good points system, and other perks that you can now enjoy thanks to a solid credit score!
• Get a co-signer with good credit for a regular credit card. Their good credit will affect your credit.
• Become an authorized user on the credit card of someone with good credit, such as a parent, friend, or mentor.
• Be a good credit user. Keep the total borrowed at 30% or less of the credit limit.
• Make all of your monthly payments on time. The most important factor that makes up your FICO score is your payment history. As a result, you need to make it a priority to make all your monthly bills on time. Learn how to get help with energy assistance costs.
• Dispute inconsistencies and errors on your credit report. If you find errors or downright lies, make sure to dispute them via the formal process offered by the Federal Trade Commission (FTC). You may choose to hire a credit repair company to do this for you.

As your credit score improves, you’ll be able to apply for some of the home loans mentioned earlier in this post.

What is the fastest way to raise your credit score to buy a house?

If you do not have any recent credit history, you can build a good credit history with the credit rating company FICO, within six months.

Tools to quickly raise your credit score now:

1. Secured credit cards. A secured credit card requires you to put down a cash deposit to secure your own credit line — and as long as you make regular charges, and regular payments on time, your score will increase quickly.
2. Check your credit report and FICO score for free, and see if you qualify for an immediate credit score increase of up to 20 points with Experian Boost, a legit way to boost your score.

Continue reading to learn more on how to build credit fast.

Can I get help with my mortgage if I am a single parent?

Home loans will help you to fund the purchase of your home, but you may be wondering how you can afford a mortgage payment, and if help is available. 

Fortunately, there are mortgage assistance programs for single mothers:

• If you have a Fannie Mae home loan, you can get mortgage payment help such as forbearance or loan modification. Use the Fannie Mae lookup tool to search for options. 
• If you have a Freddie Mac home loan, you can use this lookup tool to learn about helpful programs to keep you in your home.
• The Homeowner Assistance Fund (HAF) is a federal program that helps homeowners pay their mortgages if they can prove financial loss from COVID-19. The HAF program is closed in Alaska and Florida.
• If you have an FHA loan, HUD offers a list of resources to help you stay in your home if you have trouble making the mortgage payments, such as the Making Home Affordable (MHA) program.

You can also contact your mortgage lender and inquire about foreclosure prevention programs.

What are hard money loans?

Hard money loans are short-term real estate loans secured by the value of the property itself, rather than the borrower’s creditworthiness. These loans are typically provided by private lenders or specialized companies and are known for their speed and flexibility, though they come with higher interest rates and shorter repayment terms than traditional loans. 

Bottom line: Home loans for single mothers are available, along with assistance

There are home loans available for single moms. While loan amounts, interest rates, and fees vary, there is likely an option that will work for your financial situation. Plus, you can get assistance to pay your mortgage through grants, tax credits, and government programs. 

Before, during, and after the home buying process, be diligent with your finances, which will help you to build credit or improve your credit score.

Research all options to find mortgage assistance programs that best suit your needs. You can also talk to an HUD housing counselor or enroll in a first-time home buyer class to get more information on assistance programs so you know what to expect as you start the process.

Discover first-time home buyer grants for single mothers

25+ options for single moms seeking loans for emergencies and more

If you are struggling with money and need financial or other assistance, check out this list of resources:

Free help for single moms	$500 monthly single mom grant
Government assistance for single moms	Free beds
Free car	Free money
Free money for bills	Free gas
Free wifi	10+ charities that help single mothers
Home buyer grants	Free housing
Free ipad	Affordable movers