Let’s chat about a real-life scenario we just encountered.
We had someone approach us to find out how to purchase a home for their parent. They wanted to be closer to their family, but they didn’t qualify for the loan on their loan.
They thought that the only way to buy their parent a house was to purchase it in their name and categorize it as a rental.
There’s actually a little-used Fanny Mae rule that states if you have an elderly parent—who doesn’t qualify for a loan on their own—you can actually buy that property for them and treat it as a personal residence. That way, you’ll have a lower down payment and a better interest rate.
Our client was thrilled to hear this, and started shopping right away!
This program also works if the borrower would like to buy a property for a disabled child who also might not qualify for a loan on their own. It’ll still count as an owner-occupied home, not a rental.
Interested in learning more about this program, and if it’s right for you? Contact us today.