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 email@example.com or 757-490-4726.