The "Kiddie Condo" FHA loan program is a great way for young adults, students, and first time homebuyers to purchase a home. This program allows someone to co-sign with a blood relative (i.e parent, grandparent, sibling, etc.) who would help them qualify for the loan with their income or assets. This relative does not have to occupy the residence, however both borrowers sign for the loan and take title to the property. Both borrowers have to qualify with their credit as well.
There are many advantages to using the Kiddie Condo program including...
1. A low down payment of 3.5%
2. A lower owner-occupied interest rate vs. the higher rate of an investment property
3. Helps the new borrower establish more credit
An important note to make is that the property being purchased does not have to be a condo. If it is a condo, then it must be approved by FHA. For a list of condos that are approved by FHA, please contact one of these Cache Valley realtors.
This program is perfect for a student, recent graduate, or anyone that can't obtain a loan on their own to purchase a condo, townhome, or single family residence. This program also allows that rooms be rented out to help the borrower make the monthly payments.
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