Are you a single mother who dreams of owning your own home? If you do, you’re definitely not alone. In the past, buying a home as a single woman was unimaginable in India.
But with the growing incidence of divorce, the number of single women owning homes has increased and single women homeownership is growing. In this article, we show you how to buy a house as a single mom in India.
How Can A Single Mom Buy A House In India?
Many single women and moms mistakenly believe that they cannot afford the cost of a new home. Yes, there are really some who may be unable to afford the cost of a new home, but, for others, it is actually a lot easier than it appears.
Keeping in mind the increasing purchasing power of working women in India, a number of financial institutions now offer home loan programs for single mothers.
The first step in buying a new home involves examining where you would like to reside. This is important as it gives you an idea as to what the average asking price for homes is.
This average asking price can give you an idea as to the amount of money that you would need to have. Since different areas of the country have different real estate market conditions, this should be one of your very first steps.
Once you decide where you would like to live, you can go about finding a home to buy, as well as get financing for that home. There is no dearth of help for single moms to buy a house in India.
Speaking of financing, there are many women who mistakenly believe that they need to have money, upfront, to buy a home. That is not the truth. You can avail of government help for single moms to buy a house through standardized banks and financial institutions.
In fact, most people use home loans, provided by banks, to afford the cost of a home. If you have yet to consider getting a home loan for your new home purchase, this is the time to do so.
Although a home loan can help you afford the cost of a new home, financial lenders will first require a down payment. This down payment varies from lender to lender.
For many potential single female homeowners, this is where the problem comes in. If you’re wondering how you can come up with the money needed for a down payment, continue reading.
Today, a number of financial institutions offer home loans for single women and moms. HDFC offers home loans at lower interest rates for Indian women, while SBI has a special home loan for women called SBI Her Ghar.
SBI Her Ghar: Home Loan For Female Home Buyers
The Indian government’s home loans for single mothers are provided through nationalized banks like State Bank Of India (SBI) that are known to be trustworthy, have the lowest interest rates in the market and also charge the lowest processing charges.
SBI’s Her Ghar home loan scheme was designed to make every woman, the owner of a house. You can avail lower interest rates, along with other benefits when buying a house as a single woman.
Their single mother home loans are designed to encourage women to own property, with the greater objective of empowering women.
The eligibility criteria for the SBI Her Ghar housing loan for women is that a woman must be the sole applicant or the first co-applicant.
This home loan for women offers women applicants, or first co-applicants, a concessional interest rate and a hassle-free home loan application process.
You will also benefit from their flexible repayment options as the maximum repayment tenure for SBI home loans is 30 years or up to the age of 70 years of the borrower, whichever is early.
As security for the loan to buy a house, single moms will have to provide an equitable mortgage of the property. The better your financial status, the more likely it is that you will be able to avail of single mother loans.
Apart from that, you need to meet certain conditions as a first-time female home buyer:
- You must be an Indian resident
- You must be at least 18 years old as on the date of sanction and not more than 70 years.
- You must have a regular income and a good credit rating.
Single female home buyers will also require the following documents:
- Three passport-sized photos
- Completed loan application
- PAN card
- Identity proof like driving license/ passport/ voter ID (photocopies)
- Residential proof like electricity bill, telephone bill, etc.
- Bank account statement or passbook for the past 6 months
- Liability statements and personal assets
- Signature identification from the current bankers
As a single, female, first-time home buyer in India, these home loans for single women make it possible to give your kids the lifestyle they are used to.
How To Save For The Down Payment On Your Home Loan
One of the easiest ways for you to save money for a new home down payment is by reducing or completely eliminating all of your unnecessary purchases. These may include a coffee, soda, or other snacks at work, dining out, a full cable television package, and so forth.
Unfortunately, many individuals do not realize the importance of eliminating their extravagances, when looking to save money to buy a new home. Yes, you may only be able to save Rs 1000 or 5000 a week, but it is important to remember that money can add up over time.
Another way that many wannabe single woman homeowners work to come up with the down payment needed to buy a home is by requesting additional hours at work or finding a work-from-home job.
While doing so may result in you having less free time with your family, it is a sacrifice that many women are willing to make.
With an increased workload at work or a work at home job where you only work ten hours a week, you may be able to quickly come up with the down payment needed to acquire a home loan.
For many women, home ownership is an issue that they deal with in their life. The approaches here are just a few of the many ways that you can go about getting the home of your dreams.
The Importance of Women In Home Ownership
“As a rule, I don’t consider a purchase inquiry as legitimate unless the lady of the house in attendance.” This is an actual quote made by one of the leading real estate firms.
Such a statement speaks volumes and deserves an in-depth analysis. It reflects the sentiments of almost all experienced property consultants.
The plain fact is – when it comes to choosing and buying a home, a man’s ‘natural’ authority and predominance takes the back seat. Let’s review a few more statements made by real estate agents from across the city:
- “The man of the house may wield the money… but when it comes to buying a residence, it is his wife who decides when and where to spend it.”
- “Homes are made by women, not men. Every male knows this, and defers to the judgment of the woman in his life in such matters.”
- “I don’t see a sale happening unless the client’s wife has approved and endorsed it.”
- Take it any way you want, but the fact remains that most property dealers – be it builders, agents or marketing executives – do not take inquiries made solely by men seriously.
For many years men have had the final say in most matters – but not in issues of buying a home. “Actually, it is nothing but simple, basic psychology,” says one of the above-quoted sources.”
Women have a genetically encoded gift for homemaking and much better perspective about what should be included or excluded. A man depends on the woman to make his home comfortable and suitable for family life.
There is, of course, more than just psychology attached to this. There are very practical considerations to it, too. A property dealer will only see a final deal coming up when a woman is present because:
- It is the woman who spends the most time in a residence.
- It is the woman who has a deep, practical knowledge of what is and isn’t required in a home.
- It is the woman who can instinctively judge whether or not a residence’s price fits into the family budget.
Home Buying Factors That Women Excel At
In their eagerness to buy a home, many men overlook a number of factors that women are more likely to pay attention to, such as:
- The suitability of the neighbourhood
- Required room space for children.
- Safety factors concerning present or future children and elderly family members.
- The availability of vegetables, groceries and other necessities of life.
- Availability of storage space in the form of lofts, closets etc. in kitchens and bedrooms.
- Health factors (hygiene of immediate surroundings, proper drainage, means of garbage disposal, noise levels, etc.)
- Future maintenance costs.
“When a man walks into my office unattended by a by his wife, mother or sister, I know that this is probably not a serious prospect,” says an independent real estate broker.
“It is man’s nature to make pointless, non-serious inquiries, but a woman usually means business when it comes to investigation of residential options.”
We hope you found this home buying help for single moms useful. Do share your own experience as a single woman first-time home buyer in the comments below.
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