Buying a house as a single woman: A how-to guide

Buying a house is an exciting prospect for anyone. But single women may face some unique challenges when buying a house on their own. Let's explore what you need to know when buying a house as a single woman to make informed financial decisions every step of the way.

Home buying trends for single women

If buying a home has been on your mind, you aren’t alone. A National Association of REALTORS^® (NAR) housing trends report found that single women made up 17% of home buyers in 2023. That’s significantly higher than single males, who made up 9% of home buyers.

Single female homeownership isn’t a new trend. NAR reports show single women have outpaced single males in homeownership since 1981 – and more and more women have taken the plunge into homeownership in the past couple of decades.

Why do single women own more houses than single men? More educational and workforce opportunities for women are major drivers of the rise of single female homeownership. Today, more women have college degrees than men, which can lead to higher-paying jobs and increased earning power to buy a home.

On average, women prioritize buying homes and cutting costs on nonessential goods and services to afford them more than men. These strategies can help women build wealth and narrow the gap created by gender wage and wealth disparities.

How to buy a house as a single woman

If you’re a single woman buying a home, affordability can be a significant hurdle to clear. While saving for a down payment with a single income can present extra challenges, it’s still possible to buy a home.

Here’s a closer look at how to do it.

1. Build your credit

Whether you’re applying for a mortgage as a single person or with someone else, a good credit score is essential. For example, most lenders require a credit score of at least 620 for conventional mortgages.

As you prepare to buy a home, you’ll need to make sure your credit score is good. If it’s not, now is the time to build credit. Strategies to build credit can include making on-time bill payments and paying down credit card debt. To maintain your credit score after applying for a mortgage, avoid taking on new lines of credit while you wait to qualify for a home loan.

2. Save for a down payment

You likely know that you need to save up for a down payment. But how much should you save?

There was a time when 20% of the purchase price was the standard, but that’s no longer the case. You can qualify for a home loan with 3% down for a conventional loan or 3.5% down for a Federal Housing Administration (FHA) loan. If you’re an eligible veteran, active-duty service member or surviving spouse, you may not have to put anything down with a Department of Veterans Affairs (VA) loan.

Take some time to explore your loan options. If you can afford it, put down more than the minimum down payment to decrease your monthly mortgage payment.

Once you know how much you want to save for a down payment, it’s time to get creative with building your down payment fund. Consider setting up an automatic transfer from your paycheck to a dedicated savings account, cutting back on discretionary spending or picking up extra income with a side hustle.

3. Set your budget

While it’s tempting to browse home listings before setting a budget, stop scrolling. It’s critical to determine how much house you can afford first. You can use one of many affordability rules to land on an estimate. According to the 29/41 rule, Americans shouldn’t spend more than 29% of their gross monthly income on housing costs. Housing costs are more than your mortgage payment. You’ll also be responsible for property taxes, homeowners insurance and a homeowners association fee if a homeowners association (HOA) manages the home.

It’s recommended to keep your total monthly debt costs under 41% of your monthly gross income. You can use a home affordability calculator to run the numbers and figure out the home price you can comfortably afford.

If the home price you can afford is smaller than anticipated, it’s time to get creative with your housing search. You may have to eliminate “wants" and prioritize “needs” to whittle down your house shopping list.

4. Get preapproved for a mortgage

Before you tour any homes, it’s important to get preapproved for a mortgage.

Preapproval broadcasts to real estate agents and sellers that your home purchase offers are serious. A mortgage preapproval can give you the edge to move quickly when you find the right property.

Considerations for buying a house as a single woman

Everything we’ve covered so far applies to all aspiring home buyers. But let’s explore considerations unique to buying a home as a single woman.

Personal safety

All home shoppers should prioritize their safety. But as a single woman, it’s a critically important consideration. Keep your comfort level front and center as you shop for a home. Research neighborhood crime rates and consider enhancing your safety with a home security system and features such as outdoor lighting.

To get a better feel for an area, visit the home at different hours of the day. Check out local online forums or go offline and talk to your potential new neighbors.

Current lifestyle

The home you buy now should match your current lifestyle. Your lifestyle will likely be a key deciding factor when considering where you want to live. For example, do you want to live in the middle of a busy city or the quiet expanse of a rural area?

You should also consider how the home will fit into your schedule and what it may demand of skills and resources. Do you want a turnkey property or a fixer-upper? Are you interested in a starter home or a forever home? Do you have the time or money to maintain a big yard? Your answers to these questions can guide you to a property that aligns with your lifestyle.

Future life changes

Because a home is a long-term financial commitment, you’ll also have to think beyond your current lifestyle and consider your future plans.

Here are some questions to ask yourself before house hunting:

• Is marriage in my future? Marriage could impact your homeownership plans. A home is a major asset. Consult a real estate attorney who specializes in marriage law to ensure your interests are protected.
• Are children in my future? Kids will change the priorities of any If you see children in your future, consider having enough bedrooms or paying attention to the schools in your area.
• Are roommates in my future? A roommate can help you cover homeownership costs. If you want a roommate, look for a layout that would work for you and your future
• Is there potential to rent my space? If you want to generate income from your home, renting grants that financial flexibility. Consider multifamily homes while you search and get familiar with short-term rental laws in your area.

Pros and cons for single women homeowners

Buying a home as a single woman can have advantages and disadvantages. Here’s what you should keep in mind:

Pros

Buying a house can offer these benefits:

• Building equity: Building equity allows you to build your net worth through real estate.
• Financial security: If you get a fixed-rate mortgage, its fixed monthly mortgage payment can help stabilize your homeownership costs and make budgeting easier. Homeowners don’t have to worry about a rent increase – and their monthly housing payment goes toward owning the home.
• Privacy: Financial perks aside, homeowners often enjoy increased privacy. Homeownership can offer a reprieve If you’re tired of hearing your upstairs neighbor.
• Independence: As a homeowner, there’s no landlord to answer to. You have total control over your space and the final say over any repairs and renovations.

Cons

You may encounter these drawbacks:

• Difficult to qualify for a loan: A single income can make it more challenging to qualify for a mortgage.
• Financial commitment: A mortgage is a long-term financial Sometimes, it's as long as 15 or 30 years. Even after the mortgage is paid off, you’ll still have homeownership expenses, such as property taxes and homeowners insurance.
• More responsibility: You can’t call the landlord if something goes wrong. You’re solely responsible for keeping up with house maintenance and repairs.
• Less flexibility: Homeownership offers less flexibility than renting, potentially making it harder to travel, take a new job in a different area or move. If you aren’t ready to commit to a particular area, homeownership may not be the right move right now.

The bottom line

As a single woman, homeownership can be a financial game changer. It’s a great way to stabilize your finances and your living situation. Look at your finances and credit history and consider what you need to make a home purchase the right move for you.

If you’re ready to move forward with homeownership, apply for initial mortgage approval to get started.