Beacon Lending Home Loans in Denver Colorado

What Is Family Opportunity Loan?

Find out how Family Opportunity Loan can be used for helping elderly parents, children that are college-bound, and disabled adult children.

A great mortgage program here in Colorado that has always been around for quite some time, is the Family Opportunity Loan program. Not many people inquire about it, however, it can literally save you tens of thousands of dollars upon the purchase of a home, and even more in interest over the life of the loan.

  • There are no distance requirements between the elderly parent and the individual (their child).
  • An adult child may already own their own home (primary residence)
  • Adult children will need to provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited.

Because you get to buy another home, and not have to classify it as a Second Home or Investment Property. You can actually classify the property as Owner Occupied, so in essence, you have 2 properties that can be owner-occupied. So instead of 20% down, you only need to put down 5%. A program is way better than an FHA Loan because, with a 640 score, you can obtain a 95% loan with no mortgage insurance There are some caveats, and they apply ONLY in 3 situations.

family opportunity mortgage

Assisting a Disabled Adult Child

  • The disabled adult child must have insufficient income to qualify for a mortgage or be unable to work.
  • The parents qualify for the loan.   The parents can be on the mortgage although it is not required.
  • There are no distance requirements between the elderly parent and the individual (their child)
  • Disabled adult child occupies the property as their primary residence.
  • Parents may already own their own primary residence.

Freddie Mac and Fannie Mae products are eligible for these long-overdue programs. If you are interested in this program for a home located anywhere in Colorado, please contact me.

family opportunity loan

Assisting your College Bound Son or Daughter

  • Son or Daughter must be enrolled in college.
  • Property must be located close to the college student is enrolled in.
  • The property must be a reasonable distance from the parent’s home
  • Property cannot be rented and the child must occupy the property for a period of one year
  • Parents cannot own another second/vacation home in the same location as the student’s home
  • Parents qualify for the loan, but the child does not. If the child is old enough, they can be on the mortgage with the parents, however, it’s not qualified.
An elderly couple is excited about their family opportunity loan program.

Assisting an Elderly Parent

  • Elderly parents must have insufficient income to qualify for a mortgage or be unable to work.
  • A simple 4506-t will be run by us to verify through the IRS that elderly parents cannot qualify on their own.
  • The individuals (children) qualify for the loan. The parents can be on the mortgage although it is not required.
    • There are no distance requirements between the elderly parent and the individual (their child).
    • The adult child may already own their own home (primary residence)
    • Adult children will need to provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited.

Tax Implications of the Family Opportunity Loan

Tax implications of the family opportunity mortgage vary depending on the situation. The taxes really depend on if your relative is paying you rent that is above or below fair market value. You can find detailed answers to some common tax questions here.

Freddie Mac and Fannie Mae products are eligible for these long-overdue programs. If you are interested in this program for a home located anywhere in Colorado, Florida, or Texas, please contact Brian Quigley at 720-524-3215 or email me at brianq@beaconlending.com.

Beacon Lending Can Successfully Guide You Through the Home Loan Process

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Brian Quigley Profile Photo
Brian Quigley
NMLS#244003
Hello, my name is Brian Quigley and I have been a mortgage broker in Denver, CO since 2003. I have been fortunate enough to choose this very rewarding mortgage broker career and help thousands of borrowers over the years.

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