second home for elderly parents or disabled adult

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Second Home for Elderly Parents or a Disabled Adult

If you want to buy a home for an elderly parent, then you need to understand the Family Opportunity Mortgage Program. The little-known option lets people obtain mortgage financing for a disabled adult child or elderly parent without the expense associated with purchasing an investment property.

What’s more, you’re not required to make a 20 percent down payment.

Here’s how the loan program works for older family members:

  • The guidelines are a bit different for people who want a primary residence for elderly parents or disabled children. For one, the elderly parents or disabled children must be unable to work or not have sufficient income to qualify for a mortgage on their own.

  • There’s no distance requirement on where the primary residence is located. The elderly parents or disabled children do not have to be on the mortgage or title unless they prefer to be on it.

Under the Family Opportunity mortgage, the purchase would not be classified as an investment property. That means you would not have to spend as much money on the down payment.

When it comes to elderly parents, imagine that your parents live in a different state, and you need to move them back to Baton Rouge. With the Family Opportunity program, you can help your parents live independently while the home – which you own – builds equity.

When you assess home buying for a relative, it’s critical to know all of your options. The Family Opportunity Mortgage Program is a great one when you have unique living circumstances. Be sure to ask your lender about it when the time comes.

Assisting your aging parents:

  • You must be able to document that your parents are unable to afford the mortgage (provide parents’ tax returns)

  • You must qualify for both your home and the parents’ home

  • Property must be occupied as the primary residence by the parents

  • Property location can be near you; it doesn’t have to be a certain distance away

  • You must provide a letter explaining the parents’ financial inability and their intent for occupying the home.