What requires little to no income from the borrower, has a fantastic rate and only 3.5% down?
A Kiddie Condo loan!
And it doesn’t apply ONLY to condos!
What better way to purchase a home for your son or daughter who is headed off to college? It’s a no-brainer! The process of buying a Kiddie Condo is simple – your child applies as the PRIMARY borrower on an FHA loan (so they do need to have a credit score) and you and/or your spouse are the co-mortgagors. Your income and assets are used to qualify, and rather than needing a large down payment--which is required to buy an investment property--the standard FHA down payment of 3.5% is all that is needed. Couple this with the fantastic FHA rates and it’s a WIN-WIN for everyone! And yes, you can rent out other rooms…just as long as your child is living there.
An added benefit of the Kiddie Condo loan is that it helps build your child’s credit score as long as the payments are made on time. Payment history makes up a huge portion of the credit score so make sure you know that the payment is made on time each month…better yet, set it up for automatic draft. Helping your child build their credit is one of the best gifts you can give them. They will be ready to “fly” on their own with a strong credit score all because you helped them purchase their first home…a Kiddie Condo!
If you have children in college (or near college age) call me at (615) 895-4265 for all the details.