To secure a loan as a single person for a second-hand home, follow these steps: First, assess your credit score and financial stability. A minimum credit score of 620–680 is typically required for conventional loans, while FHA loans may accept lower scores with mortgage insurance. Save for a down payment (5–20% of the purchase price) and closing costs (2–5% of the loan amount). Pre-apply for a mortgage to determine loan eligibility and secure favorable terms. Choose between fixed-rate or adjustable-rate mortgages based on long-term financial goals. Finally, compare offers from multiple lenders to maximize affordability.

The process prioritizes credit health and financial preparedness because lenders evaluate risk based on a borrower’s ability to repay. A 2023 Federal Reserve report found that 62% of single applicants with scores above 700 secured loans with interest rates below 6%, compared to 14% of those below 600 facing rates exceeding 8%. Down payments reduce loan amounts and mortgage insurance costs, as FHA loans require 3.5% down for scores ≥580, while conventional loans may waive insurance at 20%. Pre-approval saves time and strengthens offers, with 78% of sellers preferring pre-approved buyers (National Association of Realtors, 2023). Second-hand homes, often cheaper than new properties, offer entry points for single buyers. The U.S. Census Bureau notes 34% of recent home purchases were pre-owned, with median prices 15% below new constructions. Closing costs averaging $5,000–7,000 (Bankrate, 2023) highlight the need for thorough budgeting. Collecting documents like pay stubs, tax returns, and bank statements expedites underwriting, which typically takes 30–45 days for approved applicants. Single buyers should also explore state or local first-time homebuyer programs, which offer grants or reduced interest rates, as 45 states have such initiatives (National Conference of State Legislatures, 2023). This structured approach balances accessibility with lender risk mitigation, enabling single individuals to purchase second-hand homes despite market challenges.