More Single Women Are Buying Homes: Here's Where And How
More Single Women Are Buying Homes: Here’s Where And Exactly How They’re Doing It
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Owning real estate creates a number of income opportunities. You can rent out a portion of a property or its entirely for a stream of monthly cash. You can tap into a property’s value to take out a home equity loan to start a business or buy a second property. You can purchase homes low, renovate them and flip them for a profit. There’s a lot of power in owning property, which is why CNBC reports that 23 percent of Americans believe real estate is the best path to building wealth.
While the gender and racial pay gap is still very real, there is one wealth gap that is evolving in women’s favor. Lending Tree reports that single women own more property than single men. By the way, Black women have long been ahead of the game on this. In 1670, when no married woman could legally own property, Zipporah Potter Atkins, a single and free Black woman in Boston, purchased a home in the North End neighborhood, becoming the first Black woman to own property in the city. And in 1858, Harriet Tubman became the owner of a small house in upstate New York, where she provided care to those in need.
It’s always been a good idea to own real estate, and women across America are cashing in. Here are the states where single women are buying the most property and some things to know if you’re a single woman interested in buying property.
The top three states with the highest percentage of single women-owned homes are:
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- Louisiana. In Louisiana, 15.16 percent of homes are owned and occupied by single women. The typical value of a home in Louisiana is $186,795, according to Zillow, and property values have increased 2.3 percent over the past year here.
- Alabama. Just under 15 percent of homes are owned by single women in Alabama. Zillow states that the average home value in Alabama is $207,145. The Alabama real estate market is booming, and homes have gone up an average of eight percent over the last year.
- South Carolina. In South Carolina, 14.84 percent of homes are owned and occupied by single women. The average home value in South Carolina is $269,424, says another prosperous market, South Carolina homes have seen a nearly 13 percent value increase in the last year.
The Best Mortgage Programs For Single Women
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There is no singular financial description of a single woman – of course. Some single women are wealthy and can easily afford homes on their own, while others might need some assistance. The truth is, if you are looking to buy a home with one income, you could face more challenges than couples who apply together and have proof of two incomes. But, that does not mean there are not ways to buy a home when you either have a low monthly income or a small down payment. If either of those describes your financial state, consider these loan types:
Conforming Loans
If monthly income is not the issue but you’re short on a down payment, this is a great type of loan. Conforming loans only ask for a three percent down payment (as opposed to the traditional 20 percent). They do require credit scores of 620 or higher. Additionally, you’ll need to pay for private mortgage insurance until you’ve reached 80 percent equity.
FHA Loans
FHA loans are backed by the Federal Housing Administration and are ideal for those who have a small down payment, as well as a modest credit score. With an FHA loan, you have to put down 3.5 percent of the property value, and you can have a credit score of 580 or above. With an FHA loan, you’ll also need to buy private mortgage insurance, but it differs from a conforming loan in that you’ll need to pay that insurance until you sell the property, refinance the loan or pay the loan in full.
VA Loans
Backed by the U.S. Department of Veteran Affairs, VA loans are available to veterans and service members. They allow for a zero down payment and do not require mortgage insurance. Plus, they often come with some of the lowest available interest rates. Additionally, they will generally accept credit scores as low as 580.
