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Kiddie Condos are Not Just for Kiddies!

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Mortgage and Lending with Equity Resources NMLS 67179 Licensed in NC

kiddie condo

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.

If you or your family are looking for a mortgage loan in Cary or Raleigh, please call Steve and Eleanor Thorne,River Community Bank, 919-649-5058

Comments(3)

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Fred Chamberlin
Guild Mortgage Co - Oak Harbor WA - Oak Harbor, WA
Oak Harbor/Whidbeynulls, #1 Experienced FHA Mortgage Consultant

Living in a university town, the kiddo condo has always been a great way to help your kid through college while making money on their room along the way.

Jul 20, 2008 09:03 AM
Jeff Belonger
Social Media - Infinity Home Mortgage Company, Inc - Cherry Hill, NJ
The FHA Expert - FHA Loans - FHA mortgages - USDA loans - VA Loans

Eleanor.... haven't talked in a long time.  Thanks for the polite mention.  I am not near any true college town, or I would market the hell out of this.  But since I am licensed in many states, I will give it  a shot in other towns with other realtors.  But as stated, all this program is, is allowing for a family member/relative to act as a non-occupant co-norrower... in easy terms, a co-signor. And what's been great is that FHA has allowed this on refinances also. Talk about being agressive. PS>. on a side note.... would you like to do the mortgage week in review again?  I have some dates available...  there was even some miscommunication which even left this past week open. If I could find someone to do this last minute, that would be great.  Meaning... from 7/14 to 7/20.... and because of the last minute thing, it would be due late Monday.  thanks

jeff belonger

Jul 20, 2008 09:22 AM
Carole Lhuillier
Keller Williams Realty SunCoast - Saint Pete Beach, FL
Our Home Team SunCoast

This is certainly a loan arrangement that many should consider as it has a number of benefits if a buyer can meet the requirements.  Thanks for reminding everyone of this FHA provision that some buyers can really use to their advantage.

Good luck to you,

Carole Lhuillier
Keller Williams Realty

Aug 20, 2008 03:44 AM