What is the Family Opportunity Mortgage Program?
The Family Opportunity Mortgage is a conventional loan program offered by Fannie Mae. The aim is to help children with elderly parents move to a safe living. Many times this may just mean acquiring a house near the children to make it easier to oversee and support their elderly parents at close range. The loan program also supports buying a home for adult children with disabilities, for the same purpose.
Key Benefits of the Family Opportunity Mortgage:
- Expanded Definition of Family: Fannie Mae recognizes a broader definition of “family,” allowing for more inclusive lending practices.
- Lower Down Payments: Minimum down payments similar to primary residence home loans. Typically one would use an investment home loan when buying a home for a family member. Investment home loans require 15% down payment in most cases. The Family Opportunity Mortgage allows for as little as 5% down payment.
- Better Interest Rates: Normally when buying a home for a family member when the buyer is not going to live in the home, an investment mortgage would be required. Investment mortgage interest rates are always a little higher than when buying a primary residence, also known as a principal residence. Using the Family Opportunity Mortgage Program, the payment would be more affordable.
How to Qualify for the Family Opportunity Mortgage:
Just like a normal mortgage qualification, it is important to talk to a lender who knows and understands the guidelines of this program. You can contact me for that. The person buying the home would need to have the income and assets (cash) to qualify for the home. Upon submitting an application, your lender would collect details about your income and assets required to meet down payment, closing costs, and debt to income ratio guidelines.
Getting Preapproved for the Family Opportunity Mortgage:
Upon receiving the information regarding income and assets along with your application, your lender could then provide you a preapproval letter. It is very important that you get preapproved before you start looking at homes. Sellers will not typically consider your offer without a preapproval letter. Most lender do not charge, or charge very little to preapprove you. The preapproval process is very similar to traditional purchase mortgage preapprovals.
Contact me by phone, text or email for questions, or apply online by clicking the link at the top right of this post that says, “Get Preapproved Now!”.
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