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Best Loans for Single Parents

Being a single parent can be hard. Whether by choice or not, you’ll likely be paying for medical care, childcare, and more. Thankfully, there are different loan solutions for single parents, such as installment loans, to help you through it. 

Although the cost of living varies depending on your location, one thing is certain: being a single parent today is expensive. Read on to find out what loans are available to single parents, how they can help, and more. 

Key Takeaways

  • Single parents are becoming more common, and so are their financial struggles.
  • Single parent loans are available along with other resources, including government intervention.
  • Bad credit single parent loans for home costs and emergency expenses can be applied for online.

Cost of Living as a Single Parent 

It’s no secret: the cost of living is high. No matter where you live, living costs have risen immensely over the years, and raising a family on your own has become more expensive. 

According to the Economic Policy Institute Family Budget Calculator, families consisting of one parent and one child in Washington, DC, spent, on average, $7,023 per month in 2020. 

Let’s break that down:

Housing and Childcare

When looking at the numbers, you can clearly see that the two biggest expenses for any family are childcare and housing.

In fact, childcare costs more than housing. Unfortunately, most of the time, most single parents can't escape this, considering they have to go to work to provide for their family. Although some may have relatives or friends who can look after their kids, some don’t have a choice. 

A single parent of one child spent $7,023 per month, of which $1,618 went toward housing and $1,666 went toward childcare. That’s over the amount spent on housing being spent on childcare for one child. 

The Institute’s budget calculator states that a two-child, one-parent home spends about $1,618 on housing and $3,504 on childcare in the same area. 

Although Washington, DC, isn’t the cheapest place to live, the numbers aren't better elsewhere. The total monthly budget for a single-parent, one-child home in the DC metro area is only $448 less than DC itself. Only about two hours away, the monthly budget for one parent, one child family in Harford County, Maryland, is $5,366—only $1,657 cheaper than in DC. 

So, what does that look like yearly? Well, the cost of housing for one parent and one child for one year is $19,416, while the cost of childcare for one year is $19,992. That’s just under $40,000 a year.

The average income for an individual in Washington, DC, according to the United States Census Bureau? $52,328. That means that 76.4% of the average single parent’s income is eaten up by housing and childcare for one child. 

Food Costs

The cost of food can be high for many families. In Washington, DC, the average single-parent, one-child home spends about $552 monthly on food. A one-parent, two-child home spends about $808.

And that’s without going out to eat.

The price of food changes, depending on so many factors, but it still adds up over time. As a child grows, they’ll eat more.

Transportation Costs

Transportation is important. The transportation price only increases, whether it’s gas to drop your child off at childcare before going to your job or bringing your child to the doctor.

And that’s if your transportation is reliable and doesn’t need to be repaired. The transportation price for the average single-parent, one-child home in DC is around $532.

Healthcare Costs

The price of healthcare will entirely depend on what type of insurance you have, but chances are, it’ll be expensive regardless.

On average, a single-parent, one-child household spends $689 per month on healthcare. This could be doctor's visits, paying off medical debt, emergencies, or more.

A single-parent, two-child household spends about $967 monthly on healthcare costs.

Taxes

As much as we all want to pretend they don’t exist, taxes are a big expense that we must consider when budgeting. In Washington DC, the average single-parent, one-child household spends about $1,180 on taxes, while a single-parent, two-child household pays about $2,076. That’s a steep jump for only one more child!

Other Expenses

Of course, there will always be miscellaneous expenses that pop up here and there. Whether it’s eating out, classes, or other things, the average single parent, one child home spends about $786 monthly on other expenses.

What Does All of This Mean?

This means that the average income a single parent with one child must bring home to live comfortably in Washington, DC is $84,276. That is expensive, and it gets worse.

The average income a single parent with two kids must bring home to live comfortably in Washington, DC, is $125,748. That’s for one person to bring home.

Being a single parent is expensive anywhere you look, whether in DC or elsewhere.

Loans for Single Parents

Thankfully, many different loans can help single parents deal with the cost of living comfortably and raising their children. Since there are many types of loans, we’ll let you know the type of loan followed by the loan options below. 

Home Loans

In 2022, it’s incredibly hard for anyone to buy a home with cash. Thankfully, home loans assist in helping people own a home by paying a mortgage.

Here is a great home loan offered to single parents:

FHA Loan

FHA loans are loans obtained through the Federal Housing Administration, a part of the Housing and Urban Development Department.

This is a wonderful loan for single parents because they are government-insured, meaning it will cost homeowners significantly less money than going through a private lender.

FHA loans allow single parents to have lower closing costs, lower down payments, and often have an easier credit qualification.

Emergency Loans

Life always has a way of not going as we expect. Emergencies happen often, and you may need an urgent loan when it happens. Thankfully, some emergency loans are available to cover you if you need them.

Installment Loan

An installment loan is a great option for any single parent needing a little more money to make it through an emergency. Whether it’s getting their car repaired so they can go to work and take their kids to daycare or they need help paying for an emergency medical procedure, an installment loan is a great option for any single parent.

Simple Fast Loans offers great installment loans with flexible repayment periods. The loan can be paid off in manageable installments, great for any single parent faced with an unplanned emergency. The application process is fast and easy, so you’ll be able to get your money quickly in case of an emergency.

Student Loans

Sometimes it can be hard for single parents to afford the education needed to advance in their field. Thankfully, there are multiple options for parents needing student loan help.

Perkins Loans

Perkins loans are low-interest loans offered to students who have a low income. A federally regulated loan program, only 1,700 schools currently accept this type of loan. That being said, individuals who receive this loan and get a degree in teaching, who also go on to teach in low-income schools, may have their loans deferred.

On top of that, students who show they have been seeking employment but do not have the income to pay the loan back may be able to get their loan deferred depending on the economic hardship situation.

If you are a single parent looking at continuing education, the Perkins loan is one you should look into.

Stafford Loans

Stafford loans are available to help students enrolled in accredited institutions. The interest rates for these loans are lower than others, and students are not responsible for paying them back until six months after graduation.

Stafford loans are a great option for any single parent going back to school to get a degree that will further them in their field because they won’t have to stress about paying the loan back as they are in school. Furthermore, they have up to six months to request a raise or find a higher-paying job.

GRAD Plus Loans

This type of loan gives money to students in need. This a program backed by the U.S. Department of Education, the GRAD Plus Program works with specific schools that are Direct Loan Program participants.

This is a great loan for single parents because the interest rates are lower, so they don’t have to worry about their school loans building interest while they learn.

Private Education Loans

Private lenders offer these loans and help cover the cost of education that their government financial aid will not pay. Since this is a private loan, individuals must apply with their credit in mind.

It's great for single parents who want to get an education with financial aid but need help covering the rest of the costs.

Secured Loan

A secured loan allows the borrower to put collateral up for the loan. If they cannot pay the loan back, the collateral can get taken away, so the bank can sell the collateral, allowing them to get the money back.

Secured loans are a great way for single parents to get a loan as long as they know they can repay it.

Unsecured Loans

This is one of the best types of loans since you don’t have to put collateral up when requesting. That being said, getting this loan can be incredibly difficult, especially if you have a low income or poor credit history.

Unsecured loans can be gotten through your local bank.

Christian Lending

Some organizations offer financial help for single parents- especially single mothers- who need it. To get this type of loan, you must show that you are in financial need and let them know what you need the money for.

This type of loan is wonderful for single parents who are struggling to make ends meet and need some hope thrown their way. Multiple organizations offer this, but one of the most popular is America’s Christian Credit Union.

Second Chance

A second chance loan is great for those who have poor credit. These lenders believe that everyone makes mistakes and that debt can spiral out of control instantly, especially if you have small children reliant on you as a single parent.

This is a great option for any single parent struggling with bad credit since, by the end of the loan, they’ll both have paid the loan off, built savings, and improved their credit.

Single Mom Loans

Loans for single moms with bad credit are available thanks to online lenders like Simple Fast Loans. Traditional lending institutions often rely heavily on credit scores, which can be a barrier for single mothers with less-than-stellar credit histories due to the financial stress of raising children on one income.

Simple Fast Loans takes a different approach to single mother loans. To be fair, we don't want to exclude single dads because they are also eligible for an online loan, but these loans are often referred to as "single mom loans" because there are more single mothers demographically. Installment loan decisions are based on a range of factors beyond just credit scores, allowing single moms to present a more holistic picture of their financial situation.

The Best Loan for Single Parents?

When looking at this list, you can see that there’s one loan that single parents can use for anything. That’s right; installment loans for single parents. 

Although many great loans can help with so many different issues, installment loans are one of the most perfect for any single parent to obtain since they allow them to use them on anything they need. 

Raising a child alone is expensive. It’s hard not to be nervous that you’ll be in an accident one day and unable to work for a few weeks. How will that income be replaced? 

Thankfully, installment loans can assist. Simple Fast Loans makes it so easy to apply for an installment loan, and you’ll get a decision on the spot. With flexible repayment periods, you’ll have no problem paying the loan off in manageable installments you can budget for. 

Final Thoughts 

Being a single parent is expensive. While the cost of living for any family in the U.S. is large, being a single parent means that you are likely taking on that full cost on your own. 

It’s easy to feel like you’re drowning in expenses or debt, but you shouldn’t worry. There are so many great loan options to fit your needs, including installment loans offered through Simple Fast Loans. 

Related Frequently Asked Questions

For readers researching single parent loans, here are some additional topics to consider:

Can a Single Mother Be Unemployed and Get a Loan?

While it can be more challenging for an unemployed single mother to secure a loan, it's not impossible. Many online lenders will use alternative credit assessment software. This means that they will look for factors that don't usually show up on a credit report to make a decision like landlord payments, truly whatever financial data can be gathered.

Simple Fast Loans will work with mothers and review alternative sources of income, like government assistance or child support. Again, installment loans are for emergency purposes and government programs and grants should be the first place to look. 

What Are Home Loans for Single Moms?

Home loans for single moms are specialized mortgage programs designed to make homeownership more accessible for single mothers. These programs often offer reduced down payments, lower interest rates, or assistance with closing costs. Various government and non-profit organizations provide these initiatives to support single mothers in achieving their dream of homeownership.

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