SUMMARY
- Many lenders approve mortgages based on a single income.
- Know what you can afford before you start house hunting.
- Plan for down payment, closing costs, and savings.
- First-time homebuyer assistance may reduce costs.
- Strong credit and savings improve your options.
If you’re single and are considering buying a home, you’re not alone. According to a Pew Research Center survey, nearly 30 percent of home buyers are single (women make up 19 percent of buyers; men 10 percent).* Buying a home on your own may seem challenging, but it’s more achievable than many people think. If you’re searching for how to buy a house as a single person, wondering if you can afford a home on one income, or researching tips for single homebuyers, this guide will walk you through the process step by step. This content is for general informational purposes and should not be considered financial advice.
Can you buy a home on one income?
Yes, buying a home on one income is possible. Lenders evaluate the same things they do if you’re buying a home as a couple, including your:
- Income and job stability
- Credit score
- Debt-to-income (DTI) ratio
- Available savings
If you’re wondering “How much house can I afford on one salary?”, the answer depends on many factors. Careful planning can help you qualify and stay within a comfortable budget. Check out these helpful calculators to get an idea of how much home you can afford, renting vs. owning, and more. Knowing what you can afford before you begin home shopping can save you time and help you avoid buying a home that strains your budget and long-term financial well-being.
Benefits of buying a home as a single person.
One obvious benefit is that you have full control over your home purchase. As an individual buyer, you make all the decisions, from home location to budget to the style and features of the home being purchased, without compromise. Additional benefits include:
Build equity and wealth: Owning a home allows you to build equity over time, which can support long-term financial goals.
Flexibility for the future: You can rent out a room, refinance, or sell when it aligns with your personal and financial plans.
Challenges of buying a home alone.
As a single buyer, consider that without a second income, your borrowing power may be lower, making affordability a key consideration.
You’ll be responsible for covering all the costs, including:
- Mortgage payments
- Property taxes and insurance
- Maintenance and repairs
Planning is essential to avoid financial strain. While saving for a down payment and figuring out how much mortgage you can afford are critical, remember to set aside money for maintenance and repairs. Even a “move-in ready” home may need repairs sooner than expected. Plus, you need funds to paint, add furniture, or plant a garden, and other projects that make your new home yours.
Steps to buying a home as an individual buyer.
1. Determine your budget: If you’re researching how to afford a house on one income, start by calculating your price range. Our calculators can help. Many experts recommend spending no more than 28–30% of your gross monthly income on housing (principal and interest plus property taxes and insurance).** With the median sales price of a house in the U.S. being $405,300, your monthly payment (including principal and interest) on a 30-year fixed-rate mortgage at 7.00% APR with a 20% down payment would be approximately $2,157 a month. Remember, this figure does NOT include property tax or homeowner’s insurance. This example is for illustrative purposes only and does not constitute a loan offer. Actual rates, terms, and payments will vary based on creditworthiness, loan program, and market conditions.
2. Improve your credit score: Improving your credit score is one of the most important steps you can take before applying for a mortgage. Lenders use your credit score to determine how risky it is to lend to you, which directly impacts your loan terms. A higher score can help you:
- Qualify for better mortgage rates
- Lower your monthly payment
- Increase your purchasing power
To improve your credit, focus on paying bills on time, reducing outstanding debt, and keeping credit card balances low relative to your limits. Avoid opening new lines of credit right before applying for a mortgage, as this can temporarily lower your score. Improving your credit score may help you qualify for more favorable loan terms, including interest rates.
We make it easy to know your credit score for free. Sign up for our digital banking platform and enroll to receive your credit score. You’ll get it once a month for free with no impact on your credit report.
3. Save for a Down Payment and Closing Costs: First, let’s cover what closing costs are. They include expenses related to applying for a loan and finalizing the real estate sale. You can pay these at the closing of the sale, or you may be able to roll them into the mortgage, which will increase the amount of money you owe and pay interest on. Common costs of buying a home include:
- Down payment (often 3%–20%)
- Closing costs (typically 2%–5% of the home price)
Closing costs can be high. Using the home purchase we discussed in step one above, on a $324,240 loan, closing costs might range from $6,484 to $16,212,
Saving in advance can make the process smoother.
4. Get Pre-Approved for a Mortgage: Getting pre-approved for a mortgage is an important early step in the homebuying process. It gives you a clearer picture of how much you may be able to borrow based on your income, credit, and financial history, helping you set a realistic budget before you start house hunting. Pre-approval can also make your offer more competitive, as it shows sellers that a lender has already reviewed your financial information and you’re a qualified buyer. Keep in mind that a pre-approval is not a final loan commitment, but it can help streamline the process and give you greater confidence as you search for a home.
What’s the difference between a pre-approval and a pre-qualification?
Pre-approval: You should get a pre-approval letter before beginning your home search. A pre-approval letter helps your real estate agent find properties within your approved price range. If you don’t yet have a pre-approval letter, our team can help you get started. By reviewing your financial information, we can provide an estimate of what you may qualify for and walk you through the next steps toward pre-approval. Click here to search for homes.
Pre-qualification: A mortgage pre-qualification is a good way to estimate how much you can afford. A pre-approval takes it one step further by verifying the financial information you submit to get a more accurate amount. FIGFCU provides exactly what you and your agent need: a pre-approval.
Please note: A pre-approval is an initial assessment of how much an applicant can borrow. It is based on certain assumptions derived from a preliminary review of incomplete credit information criteria. A pre-approval is not a guarantee of any particular loan product, features, or terms, nor is it an approval of a completed application. Final loan approval is subject to a comprehensive analysis of the applicant’s creditworthiness, the satisfaction of all product-specific underwriting requirements and conditions, and property acceptability and eligibility.
5. Explore First-Time Homebuyer Programs: If you’re buying your first home, there are a variety of programs, such as FHA loans, designed to make the process more affordable and accessible. Many first-time homebuyer programs offer benefits such as:
- Down payment assistance to help reduce upfront costs. For example, if you qualify for an FHA loan, you could have a down payment as low as 3.5%. Subject to FHA program requirements and borrower eligibility.
- Grants or tax incentives that may lower your overall expense
- Competitive interest rates in certain cases
These programs are often available through federal, state, and local agencies, as well as some lenders. Eligibility requirements can vary based on income, location, and property type, so it’s important to explore your options early in the process. Taking the time to research and compare programs can help you find opportunities that align with your financial situation and make homeownership more attainable.
6. Work with a Real Estate Professional: An experienced real estate agent can help you:
- Find homes within your budget
- Negotiate offers
- Navigate the closing process
If you don’t have a relationship with a realtor, we can help and save you money.
FIGFCU HOME REWARDS
We make home buying and selling more affordable and stress-free. Our free FIGFCU Home Rewards† program helps you search for a home, hire a real estate agent, and receive exclusive discounts like:
- Sell your current home for a flat 1.5% listing fee, which could save you thousands of dollars
- Eligible FIGFCU Members may receive a rebate of up to 20% of the real estate agent’s commission, applied at closing, when buying a home through the FIGFCU Home Rewards program.
- Receive outstanding service from a trusted, local real estate agent
Ready to buy now or explore what’s available? Register today without any obligation to get started. FIGFCU Home Rewords benefits are available in select markets and where permitted by applicable law.
Tips for affording a home on one income.
Before you scroll endlessly on Zillow or Redfin, it’s helpful to step back and approach your search with a clear strategy. Being intentional can save you time, reduce stress, and help you find a home that fits your budget and lifestyle.
- Choose a smaller or more affordable home: Starting with a home that fits comfortably within your budget can help keep monthly payments manageable and reduce financial strain. You can always upgrade later as your income or needs change.
- Look in lower-cost or emerging neighborhoods: Expanding your search to up-and-coming areas may give you more value (think more space) for your money and potential for future appreciation.
- Consider a condo or townhouse: These options often come with lower purchase prices and maintenance responsibilities compared to single-family homes, making them a more accessible entry point into homeownership. Be certain to consider monthly HOA fees in your budget. The list price may be affordable, but monthly fees and unexpected assessments could stress your finances.
- Rent out a room for extra income: Bringing in rental income can help offset your mortgage and monthly expenses, making homeownership more affordable.
- Maintain an emergency fund for unexpected expenses: Owning a home comes with surprise costs, so having savings set aside can help you handle repairs or financial changes without added stress.
Taking a thoughtful approach before you begin your home search can make it more efficient and help you feel confident in your decision.
Common mistakes to avoid when buying a home on one income.
You’ve found a home that feels like the right fit. Congratulations! But before you make an offer, pause and take a closer, more practical look. Buying a home is one of the largest financial decisions you’ll make, so a little extra diligence now can help prevent costly surprises later.
- Buying more house than you can afford: It’s easy to stretch your budget in a competitive market, but a higher monthly payment can quickly become stressful. Make sure your housing costs fit comfortably within your income, leaving room for other expenses, savings, and unexpected costs.
- Skipping a home inspection: A home may look perfect on the surface, especially one that has had new paint, been landscaped, and professionally staged, but hidden issues can be expensive. A professional inspection can uncover problems with the structure, roof, plumbing, or electrical systems, allowing you to negotiate repairs or reconsider the purchase.
- Using all your savings for the down payment: While a larger down payment can lower your monthly payment, draining your savings can leave you financially vulnerable. It’s important to maintain an emergency fund for unexpected expenses after you move in.
- Forgetting to budget for ongoing maintenance: Homeownership comes with regular upkeep, including repairs, landscaping, appliances, and more. Planning for these costs can help you avoid financial strain and keep your home in good condition over time.
Taking a thoughtful, balanced approach can help ensure that your new home supports both your lifestyle and your long-term financial well-being.
Is buying a home alone a good idea?
If you’re financially prepared, buying a home as a single purchaser can be a smart and empowering decision. It offers independence, stability, and the opportunity to build long-term wealth even on one income. Instead of paying rent each month, you’re investing in an asset that can grow in value over time while building equity.
That said, it’s important to take a balanced approach. As we’ve mentioned, as a solo buyer, you’re solely responsible for the mortgage, maintenance, and unexpected expenses, so having a solid budget, steady income, and emergency savings is key. The right home should fit comfortably within your financial limits while still allowing room for other goals, such as saving, investing, or enjoying your lifestyle.
For many, the benefits, such as having full control over decisions, flexibility, and financial growth, can outweigh the challenges. With careful planning and the right support, buying a home alone can be a strong step toward financial independence and long-term stability.
Final Thoughts: How to successfully buy a home as a single buyer.
Buying a home on your own may feel like a big step, but with the right preparation, it’s absolutely achievable, and you don’t have to figure it all out by yourself. By focusing on your budget, improving your credit, saving for upfront costs, and exploring available programs, you can move forward with confidence and clarity.
As you get started, take it one step at a time: review your finances, learn about your options, and ask questions along the way. And remember, even if you’re purchasing on your own, you’re not alone in the process. Our mortgage experts are here to guide and support you every step of the way, from connecting you with a trusted real estate professional to pre-approval and closing. When you’re ready, give us a call at 323.209.6326 or visit our mortgage page to learn more. We’re here to help you feel confident and supported on your path to homeownership. We are an Equal Housing Opportunity lender. All loans are subject to credit approval and program guidelines.
This article is provided for educational purposes only and is not intended as financial or legal advice. Members should contact the Credit Union for guidance regarding their individual situation.
*NAR.Realtor.com. “Single Women Are More Likely to Own Homes Than Single Men. Why? –The Hill.” NAR.Realtor.com. Published 7 May 2024. Accessed 3 April 2025.
**Olsen, Skylar. “Buyer Need a $127,000 Down Payment to Afford a Typical Mortgage Payment.” Zillow.com. Published 20 June 2024. Accessed 3 April 2025.
†FIGFCU Home Rewards: Rebate payment is made by HomeSmart Evergreen Realty and is credited to your benefit at the close of transaction. HomeSmart Evergreen Realty is not affiliated with Farmers Insurance Federal Credit Union. Commission Rebates are not allowed in the following states: Alabama, Alaska, Iowa, Kansas, Louisiana, Mississippi, Missouri, Oklahoma, Oregon and Tennessee. Information is accurate as of date of printing and is subject to change without notice.
- Sell a home and only pay a 1.5% listing fee. Does not include commission owed to Buyer’s Agent
- Buy a home and receive a 20% rebate on your agent’s commission.
