We used it to get kids into a home when they had no way to qualify on their own - no income, no assets, no credit history - and they had a family member who would go with them as a "non-occupying co-borrower".

(Ironically, since it was an FHA program, more often than not it could NOT be a condo)

Recently, FHA changed the rules - and people who have no traditional credit have to have "non-traditional" credit developed by lenders, and ALSO must have income and assets to qualify, EVEN if they have a family member willing to be a "non-occupying co-borrower.

Initially,  this announcement made some think that "the kiddie condo is a thing of the past".

HOWEVER  - the change only affects folks who have no traditional credit.  As long as the occupying borrower has acceptable credit, the FHA still allows them to get into a home purchase entirely on the strength of a non-occupying family member's income, and assets.

The "Kiddie Condo" lives!

(Footnote - this is my first attempt at posting on Active Rain.)