Family Opportunity Loans
Family is everything and it pains us when we are unable to help family in need, whether it be with the right words to say, financially or with a place to live. You won’t always have the answers to help a loved one, but what if there was a way you could help with housing?
Believe it or not, there’s a mortgage product called a Family Opportunity Loan that allows family to buy a home for their children attending college, disabled adult children or elderly parents.
You still need to qualify for both your own home and the home for the family opportunity loan, but the second property will not be viewed as an investment property, which requires a higher down payment (often 20-30 percent) and has higher interest rates. Depending on your specific financial situation, a Family Opportunity Loan often requires as little as 5 percent down.
You and your family member will need to meet certain criteria to qualify for a Family Opportunity Loan. Specific requirements vary by area, but you must provide documentation proving the family member cannot afford a mortgage on their own and the property must be the primary residence of the family member you took out the loan for.
An experienced mortgage lender will have the specific details for a Home Opportunity Loan in your area. There’s always a way to give back to family if you look hard enough. Could a Family Opportunity Loan be your way to give back?
