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 essentially be treated as a primary residence.
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. Click here for a no hassle quote for your personal scenario.
Is the family opportunity mortgage still around? If it is how do we apply for one?
Hi Kristi,
Yes the Family Opportunity Mortgage is still available. If it’s for a home in Washington state, you can click the apply tab at the top of this page and complete an application. https://mortgageporter.com/apply-for-a-mortgage
I am on vacation until August 5, 2012. However, I may be able to have someone at my office assist you until I return.
Rhonda – I wanted to thank you for your information on the Family Opportunity Mortgage. I don’t live in Washington so I cannot provide you a return via a customer, but I can say thank you. I am trying to find housing for a parent and this will prove very useful.
Might you be aware of anyone that offers this program in Florida? I’ve spoken to Chase Bank and they do offer the Fannie Mae version of this program, however, we would be looking at 20% down. That is quite steep, so I’m hoping there is another version that has a slightly lower down payment. We are at the point where my parents need to move into a permanent home and it will be up to my husband and I to meet this need.
We would require 20% down payment as well for Family Opportunity Mortgage.
I bought a vacant lot in Naples, Florida in 2013. Now I am applying for a construction loan to mortgage with credit union in Florida. I live and work in NY. I want to build a house for my retirement and have my wife and mother occupy the house. I have to keep my job in NY for now but my loan officer wants me to prove to them that this will be my primary residence. I plan to keep the house for my retirement not for investment. What kind of letter should I draft that can help me to get the loan? thanks
Joe, you need to work directly with your loan officer as to what type of letter they may require.
What happens if the elderly parent dies after a few years into this mortgage? If the child wants to keep the house, not sell, is he asked to refinance again with a new kind of mortgage?
Hi Vicky, the child would not have to refinance into a new mortgage.
What happens if at some point the elderly parent must go into a nursing home if something happens stroke or something or if the parent dies do you need to sell the home or can you still keep it ??
Hi Mia, is there a power of attorney or health directive for the elderly parent? Does the parent have a will? I’m afraid it’s not a simple question and this should probably be asked to an attorney who specializes in these matters.