October 25, 2019

How to help aging buyers

I wanted to share a recent success story with everyone: I just closed a loan in Arizona with this special scenario: A son bought a home for his Mom to live in, but the home was still treated as a primary residence for the son even though ONLY his Mom is occupying, and the son lives in San Diego. This means that the son is still getting low rates and low-down payment % to help his Mom have a home!

To clarify, the son was the only person on the mortgage and had his own primary home in San Diego. Fannie Mae guidelines still allow for this special accommodation.

If not for this guideline, children buying homes for their parents would need to buy it as a 2nd home (10% down) or Investment property (15-20% down) which may be difficult to do financially.

In some cases, it might even be more affordable to purchase a home this way and combine it with in-home nursing.

With rising costs of assisted living & healthcare, lack of retirement savings, increasing life expectancy and average SSI pay only being about $1,400 a month, these challenging scenarios for aging parents will become more & more common.

Hopefully this underutilized guideline can help someone, since many families are incorrectly told it must be an investment purchase!

Contact me for more information. I'm here to help!