Family Opportunity Mortgage
A Mortgage Option Designed for Unique Family Situations
As
a mortgage lender in Hampton Roads, I enjoy showing clients loan programs they
may not know about but could benefit from in a significant way.
Case
in point: The Family Opportunity Mortgage.
This mortgage option can help people in various
circumstances. For instance, the program is relevant when you seek mortgage
financing for a disabled adult child or elderly parent. The best part about the
program is you won’t incur the expense associated with purchasing an investment
property.
Even more, you’re not required to make a 20 percent down payment. You
can even put down as little as 5 percent.
With
respect to elderly parents, the Family
Opportunity Mortgage is terrific because it allows adult children to help with
housing expenses.
Still, it’s important to understand the guidelines if you want a primary residence for
elderly parents or disabled children. For one, the elderly parent or disabled
child must be unable to work or not have sufficient income to qualify for a
mortgage on their own.
As
well, there’s no distance requirement on where the primary residence is
located. The elderly parent or disabled child does not have to be on the
mortgage or title unless they prefer to do so.
Here’s
a scenario related to elderly parents. Imagine your mother or father (or both)
live in a different state, and you need to move them back to Hampton Roads.
With the Family Opportunity Mortgage, your parents can live independently while
the home, which you own, builds equity.
In
another situation, I recently helped a client purchase a home for his mother.
At the time, the mom lived with my client but preferred to have a place to call
her own. The Family Opportunity Mortgage allowed the mother to live alone but
the child (my client) paid the mortgage. Here’s one more real-life situation.
In North Carolina, my client wanted to buy a home for his mother because the
mom was living with a roommate until the roommate moved out. The cost of living
became too great.
Bear
in mind that, even though you may buy the home for a parent, your parent(s)
will need to show documentation to prove they cannot qualify for the mortgage
on their own. Those documents include tax returns, social security awards
letter, and/or proof of retirement income.
If
you plan to buy a home for a relative, it’s critical to know your options. The
Family Opportunity Mortgage is a great option when you have unique living
circumstances. Be sure to ask your licensed lender when the time comes.
Shikma Rubin, NMLS ID #1114873,
is a licensed loan officer at Tidewater Home Funding, LLC. in Chesapeake. She
enjoys the chance to lead workshops and webinars on how to buy a home in 2021.
Have mortgage questions? You can contact her at srubin@tidewaterhomefunding.com
or 757-490-4726.
