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🏠 Buying a Home for Elderly Parents Using the Family Opportunity Mortgage

As your parents age, their housing needs change. Maybe they can’t maintain their current home, or maybe they live far from you and need support nearby. Whatever the reason, buying a home for your elderly parent might be the best way to ensure they live safely and independently—and thanks to a special program called the Family Opportunity Mortgage, it’s more achievable than you think.

💡 What Is the Family Opportunity Mortgage?

The Family Opportunity Mortgage is a little-known Fannie Mae guideline that allows adult children to purchase a home for their elderly parent or disabled adult child—and still qualify for owner-occupied (primary residence) loan terms, even if the buyer won’t live there.

That’s huge because normally, buying a home you don’t live in means:

  • A higher down payment (typically 20%+)

  • Higher interest rates

  • Stricter qualification standards

But this program lets you skip all that by treating the home like a primary residence, as long as a few key requirements are met.

✅ Who Qualifies?

To use the Family Opportunity Mortgage for your parents, you’ll need to meet these requirements:

  • Your parent must be unable to work or lack sufficient income to qualify for a mortgage on their own.

  • You must qualify for the new mortgage (in addition to any mortgage you already have).

  • Your parent must intend to live in the home as their primary residence.

  • There’s no requirement that the home be near your current home or in the same state.

  • Your parent does not have to be on the loan or the title (unless you want them to be).

  • You’ll need to document your parent’s financial situation and provide a letter explaining their need and intent to occupy.

💸 What Are the Benefits?

Because this loan is treated like an owner-occupied property, you get:

  • Lower interest rates than on an investment property

  • Lower down payment requirements (sometimes as low as 5%)

  • No restrictions on distance between your home and theirs

  • No need for your parent to be on the mortgage

In short, you’re providing housing for someone you love, and Fannie Mae lets you do it without the extra costs of an “investment” purchase.

📍 Real-Life Scenario

Let’s say your parents live out of state, but their health is declining. You want to move them closer to you in Baton Rouge, so you decide to buy them a one-story home nearby. Your mom receives Social Security but doesn’t qualify for a mortgage on her own. Under the Family Opportunity Mortgage, you can buy the home in your name and still qualify for primary residence financing terms—even though you won’t live there.

📎 What You’ll Need to Apply

Here’s what you (and your lender) will need:

  • Your own income and credit to qualify for the loan

  • Your parents’ tax returns or income docs (to show inability to qualify)

  • A letter explaining the situation, including that your parent will occupy the home

  • The new property must be single-unit and suitable for full-time living

🏁 Final Thoughts

This program is one of the most compassionate and practical options available in the mortgage world. It allows you to help a loved one live with dignity—while still building equity for your family’s future.

Ready to find out if you qualify? Reach out to Parish Lending and we’ll walk you through every step.