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! He could live independantly - and everyone was happy!
Wondering how Social Security Income works with FHA? Well, we can gross it up 115%! So if you need the Social Security income to qualify with another family member - that's allowed.