Turning Challenges into Homeownership Success: A Single Mom’s Journey

 


Turning Challenges into Homeownership Success: A Single Mom’s Journey

When Maria, a devoted single mom, first reached out to me, she was both excited and a little anxious. She’d found a cozy three-bedroom home in a neighborhood she loved, but her FICO scores were lingering just at the threshold for an FHA loan. With the help of a Down Payment Assistance (DPA) program, we were able to cover nearly all of her closing costs and secure her initial approval. The way the DPA is designed, it dictates a higher interest rate and a second lien payable over a ten-year period—or deferred until the end of the loan. Either option would have increased her monthly housing payment. While qualified, as a lender, I like to see my customers hold on to as much of their income each month as possible. Even so, Maria knew that improving her credit could only strengthen her position—and potentially lower her rate—so she committed to paying down small balances and making every payment on time while we moved through the loan process.

As luck would have it, the home appraisal came back significantly higher than our agreed purchase price. This was amazing news! We now had all this equity sitting there and a loan that was begging to be re-evaluated. A perfect scenario started to present itself. With that equity, all we needed to do was ask the seller to agree to sell his home at a higher price than originally agreed to. We were able to show Maria how leveraging the equity and dropping the DPA would lower her monthly payment substantially and free up her monthly income. Plus, we secured a rate competitive with the open market and well below what any of the DPA programs were offering.

Maria still had the required 3.5% “skin in the game” down payment ready, and the sellers had ample equity built into the home. We sat down with the seller’s agent and crafted a plan: raise the sale price closer to the appraisal and convert the difference into a seller concession, all while lowering the buyer’s monthly payment and closing costs. The seller agreed! The buyer agreed! The Realtors agreed! It was a win-win-win for everyone.

That seller concession—set at the maximum 6% allowed on an FHA transaction—not only covered any remaining closing costs but also gave us the leverage to buy down Maria’s interest rate. Because her credit had improved during underwriting, she qualified for a rate even lower than what the original DPA program offered. The result? Maria’s monthly payment dropped by hundreds of dollars below what she’d been planning for, making her new home truly affordable.

In the end, everyone walked away a winner. The sellers enjoyed the assurance of a solid FHA-backed sale at full market value, Maria moved into her very first home with more breathing room in her budget, and I had the privilege of guiding her through every step. Her dedication to improving her credit, combined with a little creativity around appraisal equity, turned what could have been a stressful situation into a seamless path to homeownership.

Stories like Maria’s remind me why I love what I do: when we look beyond a cookie-cutter mortgage and tailor solutions to each client’s unique circumstances, remarkable outcomes become possible. If you or someone you know is ready to take the next step toward owning a home—especially if you think your credit or closing costs might hold you back—let’s talk. We’ll explore every option to make your dream a reality.

About Between Two Doors
Between Two Doors is a podcast where I talk with Realtors about their journey, aiming to connect home buyers and sellers with agents on a more personal level. I ask "right brain" questions that go beyond transactions, focusing on the experiences, values, and passions that make these professionals great at what they do.

Listen to more episodes at: https://www.betweentwodoors.com

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Premier Lending, Inc.
https://www.natecarver.com

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