Kiddie Condo Loan in Tuscaloosa AL
Or a house. Do not let the name fool you.
The Federal Housing Administration (FHA) allows parents to buy a home that their child can live in during their college years.
The Benefits of the Kiddie Condo Loan in Tuscaloosa AL:
- Rent can be collected from the child’s roommates.
- The down payment is 3.5%.
- Parents receive the benefits of an owner-occupied loan program, such as low down payment (3.5%) and low interest rates (owner-occupied rates, not second home or investor rates, which are higher). The parents are acting as a "non-occupied" cosigner.
- The child can build credit with mortgage payments.
The Requirements of the Kiddie Condo Loan in Tuscaloosa AL:
- Condominiums must meet a certain owner/tenant occupancy ratio to qualify. Remember, houses qualify, too, and are not subject to a ratio.
- The child has to live in the home. However, the child does not have to be a college student. You can also purchase a home for your child to help them build credit.
- FHA loan requirements apply, and the child's credit and income history will be required.