The Family Opportunity Mortgage helps families who are buying or refinancing homes for college students, elderly parents and disabled adult children. Without this program, these transactions would often have to be considered as “investment properties” with higher interest rates and closing costs. Now, it can be treated as a vacation or second-home mortgage.
NOTE: plan on an 80% loan to value with the Family Opportunity Mortgage – I’m not aware of any private mortgage insurance companies who are offering this program.
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 qualified.
Assisting an Elderly Parent
- Elderly parent must have insufficient income to qualify for a mortgage or be unable to work.
- The individuals (children) 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).
- Adult child may already own their own home (primary residence)
- Adult child will need to provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited.
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.
Freddie Mac and Fannie Mae products are eligible for these long overdue programs. If you are interested in this program for a home located anywhere in Washington, please contact me.