Finding a mortgage for a second home can be expensive. The down payment requirement is high, the interest rate is not as great as a loan for a primary home and there are other restrictions. However, if you find yourself in need of buying a home for an elderly parent or an adult child with disabilities, Fannie Mae has you covered with the Family Opportunity Mortgage.
The best feature is that Fannie May only asks for a 5% down payment. Also, the borrower can qualify as an owner-occupied client, which provides great interest rates. This is a wonderful program to allow people to provide a home for their parents in their golden years and still allow the parents some independence.
For adults with disabilities who can live on their own but don’t have the income to support a house payment and home insurance, this is also a great loan. Parents can go to bed at night knowing their child is in a safe living environment and that their child is not worried about the financial commitment.
Check out the particulars of the Family Opportunity mortgage and see if it can benefit you and your family as your financial needs change in later years.