Are you looking for an affordable way to provide housing for elderly parents or your disabled adult child who cannot qualify for mortgages independently? We have some great news.
You may consider buying the second home as an investment property. However, this approach comes with high-interest rates and strict rules.
Fortunately, by opting for the Family Opportunity Mortgage, you can purchase a home for your adult child with special needs or elderly parents without meeting conventional investment property loan requirements.
This post will tell you all you need to know about Family Opportunity Mortgage loans, highlighting their benefits and what you and your loved ones need to qualify.
We understand the many challenges Americans face when trying to provide senior citizens with safe living environments. While some often opt for renting cheap properties, most prefer their family members to own the home. Unfortunately, the structure of most loans proves to be an obstacle for many.
For instance, when taking out a loan to buy a second home, the necessary down payment is often relatively high. Most lenders ask for 10%, with others requiring as much as a 20% down payment.
Second, the homeowner’s insurance premiums for that second home will also be more expensive and have higher interest rates, especially on long, fixed-term loans. Fortunately, a Family Opportunity Mortgage can help you avoid these costs.
A Family Opportunity Mortgage capitalizes on a loophole within the Fannie Mae rulebook. The loophole states that people can take advantage of “owner-occupied” rates and guidelines if the person occupying the second home is elderly or has a disability and is unable to qualify for a loan on their own.
This mortgage program helps people who desire to set up housing for elderly family members or adult children with disabilities but do not have enough money for down payments. It lets you buy your loved ones’ home at the same down payment and mortgage rates as if you were the one going to live in the house.
The program provides you with an interest-free loan, which the government forgives after ten years. Furthermore, the mortgage structure makes the payments affordable over time while still covering the property’s total value.
The following are some of the key advantages the Family Opportunity Mortgage loan can offer you.
Besides these, there are additional qualifications that the home’s occupant must meet, depending on whether they are an aging parent or an adult child with special needs.
While there are several factors that lenders will consider, it is not complicated for your elderly parent to qualify for this financing option. Most importantly, they must either have insufficient income or be unable to work to qualify.
Though they can receive assistance income, this income should not be sufficient enough to enable them to afford a home. The home must also be their primary residence.
On top of these qualifications, you will need to document their situation. This process will require:
The necessary qualifications for an adult child with special needs are slightly different. For starters, you must document evidence of your child’s disability. Several disabilities would enable your child to qualify, including ADHD, Down syndrome, and Cerebral Palsy.
You can have your child live with an elderly parent, with the program permitting you to name the child as the home’s primary resident and the elderly parent as the secondary resident. Doing so allows your child to enjoy some independence and gives you peace of mind knowing that they live in a safe place.
In addition to the qualification requirements mentioned above, you should also keep in mind that Family Opportunity Mortgage loans do not apply to all homes. The program has restrictions regarding the type of home you can purchase.
The program only covers single-unit dwellings, meaning the property cannot be a timeshare, vacation home, or any other type of investment home. Additionally, you must be the primary person responsible for controlling the house. You cannot allow a management firm to manage the home’s care or occupancy.
Having a home is something in which we all take pride. Thanks to affordable loan programs like the Family Opportunity Mortgage, you can help your elderly parents or disabled adult child achieve security and independence.
This program is one of the best opportunities American families have, helping them purchase a second home with low down payments, interest rates, and affordable monthly payments.
Due to the program’s unique features, it’s never been easier for you to buy a second home. If you have elderly parents or an adult child with special needs, you can now provide them with the sense of freedom that comes with residing in their own home.
As beneficial as FOMs are, finding the right loan requires a lot of research and expertise. Fortunately, you can turn to the professional loan officers at A and N Mortgage Services.
A and N Mortgage Services Inc, a mortgage banker in Chicago, IL provides you with high-quality home loan programs, including FHA home loans, tailored to fit your unique situation with some of the most competitive rates in the nation. Whether you are a first-time homebuyer, relocating to a new job, or buying an investment property, our expert team will help you use your new mortgage as a smart financial tool.
Welcome to a better mortgage experience! In just few minutes you can find out what you qualify for and explore multiple loan options and interest rates.
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