Finally there is a mortgage program available that are designed for when someone is buying a home for another family member. Previously, if someone wanted to buy a home to have their elderly parents live nearby, unless it could be classified a second or vacation home, the borrower would need to use non-owner occupied financing (much more expensive in rate and cost than owner occupied or second home financing).
In addition to helping out the folks, this new program, the Family Opportunity Mortgage, works for parents buying a home for their college student and parents who would like to help their disabled adult child buy a home.
Here’s the skinny:
Assisting a College Bound Student
- The child must be enrolled in college.
- The property must be located close to the college the student is enrolled.
- Property must be a reasonable distance from the parents home.
- Property cannot be rented and the child must occupy the property for a minimum of one year.
- Parents cannot own another second/vacation home in the same location as the student’s home.
- Parents qualify for the loan, the child does not. If the child is old enough, they can be on the mortgage with the parents, however it’s not
Assisting an Elderly Parent
- Elderly parent must have insufficient income to qualify for a mortgage or be unable to work.
- The individuals qualify for the loan. The parents can be on the mortgage although it is not required.
- There are no distance requirements between the elderly parent and the individuals (their child).
Assisting a Disabled Adult Child
- Disabled adult child must have insufficient income to qualify for a mortgage or be unable to work.
- The parents qualify for the loan. The parents can be on the mortgage although it is not required.
- There are no distance requirements between the elderly parent and the individuals (their child)
- Disabled adult child occupies the property as their primary residence.
- Parents may all ready own their own primary residence.
It’s about time! 🙂