Buying a Home for a Parent (or child)
There's a rise in the United States of multigenerational living - that is, 2 (or more) generations living under one roof. As homes grow in size more people are taking advantage of in-law suites, multi units, and other property alterations to comfortably accomodate more people under one roof (or sometimes more realistically, on one parcel). As people grow older and housing grows more expensive, multi generational living is a solution for many.
An alternative that fewer people know about is a provision within conventional guidelines that allows for family members to purchase homes for each other when one is unable to purchase for themselves. Even better, this can be done under conventional loan guidelines and with underwriting and rate pricing based on "primary residence" occupancy.
This is a wonderful loan options for people who are financially able to assist parents who don't have the financial capacity to support a mortgage for themselves, and also for parents with children unable to support themselves financially due to a developmental disability. Best of all, underwriting and qualifying is exactly the same as if the purchasing party were buying the home for themselves. The only additional requirement is a letter of explanation from the parties for why the home is being purchased on behalf of the other party.
Recently, we closed such a loan in Williamsburg, Virginia where a young couple with a modest home of their own purchased a single family residence for their aging parents very close by. This allowed the parents independent living without an overwhelming financial burden, and avoided the need for the children to move out of their home to find a home more suitable for mutigenerational living - a true win, win!
Curious to see if you could qualify to buy a home for a parent or child in need of assistance? Give us a call at 484.680.4852 or get your questions answered instantly by asking an expert here!