Exploring the Benefits of the Family Opportunity Mortgage

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.

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.

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.

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.

Empowering Families: Harnessing the Family Opportunity Mortgage in Today’s Market

In today’s real estate market, families often encounter unique situations that require flexible financing options. The Family Opportunity Mortgage offers a solution for families seeking to support their loved ones in achieving homeownership. Whether you’re assisting an elderly parent, a child attending college, or a disabled family member, the Family Opportunity Mortgage presents opportunities to navigate these circumstances. Here’s a closer look at how this mortgage program can benefit families in today’s market:

1. Assisting Elderly Parents: Many families face the challenge of providing suitable housing for aging parents. The Family Opportunity Mortgage allows qualified borrowers to finance a home for their elderly parents without requiring the parents to be on the loan. This enables families to secure a mortgage based on their own income and creditworthiness while offering their parents a comfortable and affordable living arrangement.
2. Supporting College Students: The cost of housing for college students can be a significant burden on families. With the Family Opportunity Mortgage, parents can purchase a home near their child’s college or university and utilize this mortgage program to provide housing for their student. This can be a cost-effective alternative to renting, potentially building equity and offering a sense of stability during the college years.
3. Assisting Disabled Family Members: Families with disabled members may require specific housing accommodations to meet their unique needs. The Family Opportunity Mortgage allows eligible borrowers to finance a home for a disabled family member, even if the borrower already owns a primary residence. This program acknowledges the importance of creating a supportive living environment and simplifies the financing process for families in these circumstances.
4. Flexible Underwriting: The family Opportunity Mortgage takes into account the borrower’s debt-to-income ratio based on their own financial circumstances, rather than considering the income of the family member who will be living in the financed property. This flexibility can make qualifying for the mortgage more accessible, providing families with greater opportunities to extend support to their loved ones.
5. Potential Tax Benefits: Families may benefit from potential tax advantages associated with the Family Opportunity Mortgage. Consult with a tax professional to understand the specific tax implications and deductions that may be available to you based on your unique situation.
6. Consult with Mortgage Professionals: When considering the Family Opportunity Mortgage, it’s crucial to consult with mortgage professionals who are experienced in this specific program. They can provide personalized guidance, explain eligibility requirements, help navigate the application process, and ensure that you take full advantage of the available benefits.

Remember, each family’s situation is unique, and it’s essential to assess your specific needs and financial capabilities. The Family Opportunity Mortgage opens doors to homeownership for families seeking to provide support and create a nurturing environment for their loved ones. By exploring this program in today’s market and partnering with knowledgeable professionals, families can find the right mortgage solution that aligns with their goals and strengthens family ties through the power of homeownership.