Mortgage Financing Options for Family Members
As the real estate market has rebounded, buyers are finally making those long-delayed moves. But some buyers are investigating another type of home purchase – a second primary residence for a family member.
Allen Tate Mortgage is proud to offer something called the Family Opportunity Loan. It’s a specialty loan designed to help finance a townhome for a college-bound son or daughter; purchase a condo for elderly parents who need to move closer; or buy a home for a disabled adult child who desires to live independently.
The Family Opportunity Loan allows these types of home purchases to be financed with a conventional mortgage with mortgage insurance, just like a primary residence. What that means for you is a down payment as little as 5 percent and a favorable interest rate – both lower than an investment property purchase.
Like other loan programs, the Family Opportunity Loan program has specific guidelines and specific documentation is required. For example, a home purchased for a college student must be occupied by the student for a minimum of one year and cannot be rented. An elderly parent or disabled adult child must have insufficient income to qualify for a mortgage or be unable to work.
While some loan programs allow a family member to gift part of a down payment, the Family Opportunity Loan program offers the opportunity to help family members in specific situations to finance a home that meets their needs, with a reasonable down payment and interest rate.
If you’d like to learn more about the Family Opportunity Loan and other programs to help you or your family members enjoy homeownership, talk to an Allen Tate Mortgage Consultant.
By: Lisa Green (Vice President of Loan Origination)
Allen Tate Mortgage NMLS# 79543
Loans available in NC/SC
All loans subject to credit and collateral approval.