The FHA home loan allows family members to help make it easier for their family members to get approved for a home loan, even if they’re not going to live with them. The FHA also allows family members to provide “gifts” that can be used for down payments, closing costs or to pay off debt that is in the way of getting that approval. Family members can even be listed on the mortgage, but not live in the home and vice versa, live in the home, but not be listed on the mortgage. Borrowers can use their families income to help get approved, and they don’t have to live in the home or even be listed on the mortgage.
When a family member helps a borrower by providing their income or even co-signing on the mortgage they are helping to ensure the borrower be approved for the home loan. This is most commonly known as a Kiddie Condo Loan. Despite the name “Condo” this type of home loan program applies to more than just condominiums. You can use the kiddie condo loan for a single family home, a townhouse, a condominium or a manufactured home.
Who Can Use a FHA Kiddie Condo Loan?
Kiddie Condo Loans are most commonly used by students in college and their parents. It has also been used for rental properties and for first time buyers who can’t qualify with their income alone. Best thing about the kiddie condo loan besides the fact that family can help get you approved, is you don’t have to be employed full time or even have a credit history established. This is also a popular option for people whose parents are retired, but need a place to live. Using the non-owner occupied co-borrowing FHA loan, people are able to help get their parents into a home of their own. This is also an ideal loan program for single parents.
This program is best used for income based issues, not necessarily credit issues. In fact if you’re not approved for a home loan due to poor credit, a co-signer may not help with this program. While the down payment requirements for the kiddie condo loan are around 3.5% the main borrower and head of the household will need a credit score of at least 620 to qualify and to qualify for the low 3.5% a borrower will need roughly a 720 or higher credit score.
Questions About the Kiddie Condo Loan?
Get in touch with a lender if you have any questions about the kiddie condo loan,
the qualifications, or requirements. We can help you get matched with a qualified lender who is willing to help you with all your home loan needs and answer any questions you may have. Be sure to shop around to different lenders and compare their qualifications, rates and options. Not every lender will offer the kiddie condo loan, and qualifications will vary depending on the lender and your area. Simply click the orange button below and fill out the necessary information to be matched with a qualified lender. It’s quick and easy and best of all it’s free!
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