What’s the Best Way to Buy a Home for Your Child?

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In today’s heated market, sometimes a little bit of parental help can be the push buyers need to win over an offer. There’s a few ways parents can help their child purchase a home, and we’ve included them on today’s article. Keep reading for some of the options below:
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# 1 –No More “FHA Kiddie Condo” Loans

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This used to be a very flexible option where FHA loans allowed parents to put down only 3.5% in order to help kids buy a home, but it no longer exists. We wanted to clear that up first because we get asked about this quite often.

#2 –Buy it as a Second Home

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This is an option if parents can convince underwriters that the property is actually a second home. Now if you’re looking for a run down bungalow for $100,000, underwriters might get more suspicious. Talk with your mortgage lender (us ) to discuss this option and if you might qualify.

#3 –Buy it as an Investment Property

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This of course works for any property, as long as parents qualify and can have the minimum down payment.

#4 –Buy on Behalf of Special Needs Child

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Parents can buy with “owner-occupied” financing if they can prove their child has special needs (handicapped or disabled).

#5 –Co-Sign on Behalf of Child

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Parents can simply co-sign for their child too, but the child does need to have adequate credit established. However, the child does not need to have any income.

Curious about anything you’ve read here or what it takes to qualify? Reach out to us or give us a shout. We’d be happy to answer any and all questions you might have.

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