FHA "Kiddie" Condo Loan Program
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As a parent of two college kids I know how expensive tuition, housing, meals, books and other miscellaneous costs can be. College isn’t cheap these days and the costs seem to mount every time you turn around. So what if there was a way to slash those costs and allow you to invest in your child’s future?
Say hello to an underused and unappreciated FHA (Federal Housing Association) program called the Kiddie Condo loan.
This option allows you to make an investment into your son or daughters future that will continue to pay dividends over time. It’s an excellent way to get your child on the road to home ownership without breaking the bank or your pocketbook.
FHA Kiddie Condo Program Details
The process of purchasing a home through the Kiddie Condo program is easy.
- Your son or daughter will apply for an FHA loan as the primary occupying borrower with you and/or your spouse qualifying as non-occupying co-borrowers. The assumption is that you will not be occupying the property with your child, but you are able to able to add your income and credit for qualifying purposes.
- Your child does not need a credit score so if they have yet to establish credit don’t worry. As long as you or your spouse has established credit scores, that will suffice.
- The down payment is 3.5% just as it is on a standard FHA loan rather than the 20% required on an investment property.
- The down payment can be a gift from a family member.
- There is no increase to the interest rate. Your rate will be the same low rate offered to any other FHA home buyer.
- While you can purchase a condominium, you can also purchase a townhome, single family residence or any other type of property insured by FHA with the Kiddie Condo FHA loan.
- Friends of your son or daughter are able to live in and rent a portion of the home as long as your child occupies the home as their primary residence.
- An added benefit of the Kiddie Condo loan is that it assists in building your child’s credit score as long as monthly payments are made on time. Since payment history is a significant portion of your credit score; timely monthly mortgage payments builds credit quickly.
What better gift to give to your son or daughter as they head off to college than home ownership? With a low down payment and excellent interest rates, an FHA kiddie condo loan is a fantastic alternative to the high cost of living on campus.
If you are a first time home buyer or a parent interested in qualifying for an FHA Kiddie Condo Home Loan, call us today. Your first step is home loan pre-approval so you can confidently write an offer on a Colorado Springs home that you know you are qualified to purchase!
FHA Kiddie Condo Loan is Too Cool for School was written by Rebekah Radice.
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T: 719.387.1368 | Email: firstname.lastname@example.org | Website: http://rebekahradice.com |CO & NMLS Licensee: LMB100010938 & 288596 | Benchmark Mortgage dba Ark-La-Tek Financial Services, LLC | 12 E. Kiowa |Colorado Springs, CO 80903
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