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Kiddie Condos are Not Just for Kiddies!

I was reading a post by Jeff Belonger about Kiddie Condos, and I was reminded of a loan we closed last month...

Kiddie Condo Loans refer to a FHA provision that allows for non-occupying co-borrowers. Parents like us, with kids in college, come out a LOT better owning a unit with the student, and renting it back out. We've done many of these for our friends - and most of them were NOT condo units. It's just an industry slang term for the loan that only requires a minimal invstment (less than 5% normally covers all costs), and does not require the student to be employed full time - or have a credit score established.

We used this program for a family that moved here and wanted their dad to live in Cary. Their mom died a few years earlier - and her illness pretty much wiped out their dad's cash... He also didn't have a ton of income. Using the non-owner occupied co-borrowing of the FHA loan, we were able to get Grandpa a loan in a nice ranch near their home!

If you or your family are looking for a mortgage loan in Cary or Raleigh, please call Steve and Eleanor Thorne, Meridian Residential 919-459-1313

Posted by Eleanor Thorne, Cary Mortgage Loans on 07/20/2008 03:47 PM

Comments (3)

fha loans seniors, active 55, cary mortgages, mortgages cary, fha loans, kiddie condos, nonoccupying coborrower

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3 Comments on Kiddie Condos are Not Just for Kiddies!

Living in a university town, the kiddo condo has always been a great way to help your kid through college while making money on their room along the way.

07/20/2008 04:03 PM

by Fred Chamberlin - Eugene/Springfield's #1 Experienced FHA Mortgage Consultant (Alpine Mortgage Planning)

Eleanor.... haven't talked in a long time. Thanks for the polite mention. I am not near any true college town, or I would market the hell out of this. But since I am licensed in many states, I will give it a shot in other towns with other realtors. But as stated, all this program is, is allowing for a family member/relative to act as a non-occupant co-norrower... in easy terms, a co-signor. And what's been great is that FHA has allowed this on refinances also. Talk about being agressive. PS>. on a side note.... would you like to do the mortgage week in review again? I have some dates available... there was even some miscommunication which even left this past week open. If I could find someone to do this last minute, that would be great. Meaning... from 7/14 to 7/20.... and because of the last minute thing, it would be due late Monday. thanks

jeff belonger

07/20/2008 04:22 PM

by Jeff Belonger -- The FHA Expert.com -- FHA Loans -- FHA mortgages -- Mortgages (Infinity Home Mortgage Company, Inc)

This is certainly a loan arrangement that many should consider as it has a number of benefits if a buyer can meet the requirements. Thanks for reminding everyone of this FHA provision that some buyers can really use to their advantage.

Good luck to you,

Carole Lhuillier
Keller Williams Realty

08/20/2008 10:44 AM

by Carole Lhuillier - Our Home Team - Keller Williams Realty (KW Offices in Metro Atlanta and Tampa Bay)

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