Editor’s Note: This post has been updated to reflect current guidelines. While Fannie Mae and Freddie Mac no longer use the specific “Family Opportunity Mortgage” name, the expanded occupancy guidelines that allow this type of financing are still fully available and actively used today.

Most people know you can use conventional financing to buy a home for an elderly parent or disabled adult child — but fewer realize you can also refinance an existing home under the same expanded guidelines. If you currently own a home where a family member is living, or you’re planning to purchase and eventually refinance, this option is worth understanding.

This post focuses specifically on the refinance scenario. For a full overview of the program including purchase guidelines, visit the Family Opportunity Mortgage program page. [Read more…]