If you are looking to purchase a home for your disabled child or elderly parent, a Family Opportunity Mortgage may be the solution. Typically, a buyer who already owns a primary residence would need to purchase an investment property or a second home in order to accommodate this goal, except in this unique case.
The reason this is significant is that purchasing an investment property or a second home comes with drawbacks. For one, the borrower is typically required to put more money down. And two, the interest rate is generally higher due to the occupancy status of the property that they are looking to purchase.
A Family Opportunity Mortgage allows a borrower to buy a home for their disabled child or parent, as if it were a primary residence, allowing for better financing options and more flexibility in qualifying for a mortgage loan.
If you have a disabled child or a parent who can not work or has limited income, you can buy or refinance a home on their behalf. You would be an applicant on the loan for the disabled family member, and they would not necessarily need to be a borrower on this mortgage.
Here are the steps to buy a home for your qualifying family member:
- Fill out a loan application: Follow the steps provided for Key Components of a Mortgage Loan Application
- Get pre-approved by one of our loan originators: This allows you to shop around for the home that best fits your family member’s needs
- Provide Documentation: You may need to provide proof of the disability or your parents’ lack of income
- Loan Closing: Sign final loan documents, provide the down payment, and complete the details to officially close your loan
With a Family Opportunity Mortgage, you are not required to live in the home to qualify. You can get a lower interest rate, put as little as 5% down payment, and help your family get into a home they wouldn’t otherwise be able to.
If you want to help a family member live comfortably and safely, give us a call at (760) 930-0569 to speak with one of our Mortgage Loan Originators. We are here to discuss your goals and help you figure out which loan programs could be the best fit for your needs.
