NAR’s most recent Profile of Home Buyers and Sellers found that 19% of recent buyers were single females and 9% were single males. While solo home buyers may face some unique challenges, it doesn’t mean homeownership is out of reach.

Here are a few tips for those looking to purchase on their own. 

Check your credit

Buying a home by yourself means you must qualify for your mortgage loan based solely on your own income, finances, and credit history. 

The Federal Trade Commission says you are entitled to a free copy of your credit report every year from each of the three nationwide credit reporting companies. You can order your report online from annualcreditreport.com. Many banks and financial companies will also make your credit score available for free if you are an existing customer.

Once you have your report, review it thoroughly to make sure it doesn’t contain any mistakes. If anything looks amiss, contact the credit reporting company right away.

Get real about your budget

If you’re taking on a mortgage by yourself, it’s important to take a hard look at your monthly expenses and put together a realistic budget. Some financial advisers advise spending no more than 30% of your pretax income on housing, while others, like financial guru Dave Ramsey, suggest 25% as the max.

When crunching the numbers, don’t forget that in addition to your mortgage, you’ll also be responsible for property taxes and homeowner’s insurance. And, if your down payment is less than 20%, you’ll also have mortgage insurance.

Remember that lenders are looking at your gross income and monthly debt, but they aren’t aware of other expenses like daycare, auto insurance, medical costs, dining out, vacations, etc. From a lender’s viewpoint, it might look like you can afford a certain amount, but you really need to spend much less to keep your personal finances healthy.

“You also need to consider general homeownership costs like updates, repairs, and routine maintenance, as well as things like utilities, snow removal, lawn care, etc.,” said REALTOR® Wanda Williams with Century 21 Cedarwood. “And all homeowners should set up an emergency fund. This is critical because it can provide a financial safety net when you run into large, unexpected expenses.”

Look into alternative loan programs

Saving for a down payment is regularly cited as the number one obstacle to homeownership. The good news is there are options available, and it is possible to buy a home with less than the standard 20% down.

There are also several government-backed mortgage programs that accept low down payments. The Federal Housing Administration (FHA) offers borrowers a chance to get into a home for as low as 3.5% down, and the United States Department of Agriculture (USDA) offers a zero down payment mortgage for eligible rural homebuyers. There is also the Veterans Affairs (VA) loan program, which enables qualified buyers to purchase a home with virtually no money down and they can do so without the penalty of private mortgage insurance.

“You can also look into specialty programs like the Chenoa Fund, which offers down payment assistance products in conjunction with FHA-insured mortgages,” said Williams. “And MSHDA also provides a variety of products to help buyers afford homeownership, including their down payment assistance programs which provide up to $7,500 in assistance.”

Lean on the experts

Being the sole owner of a home can seem daunting, but you don’t have to go it alone. Williams says connecting with a local REALTOR® and lender is the best way to ensure success.

“I think the most important step for any buyer is to first meet with a local lender to go over finances,” she said. “Be open and honest, ask questions, explore your options, set a comfortable budget, and secure your pre-approval. Having that nailed down will allow you to feel confident moving forward through the rest of the process.”

For a list of local, reputable lenders and REALTORS®, visit the Greater Lansing Association of REALTORS® website at www.lansing-realestate.com.