Being in the Kansas City market, we are lucky to have many opportunities during the back to school months. With three Division I Universities within 100 miles of Kansas City (KU, MU and UMKC), there are unique opportunities for parents wanting to allow their children to have off campus living quarters. Many of these parents are buying investment properties for their children. As you know, the investment programs have gotten more difficult to qualify for and require more money down.
Here is an idea. Use FHA. If the student is at least 18, the parents can co-sign for an FHA mortgage for the child. The child would be the owner-occupied resident and the parents qualify for the loan. 3% down is MUCH better than 10% or even 20%.
Please remember that FHA Seller Funded Down Payment Assistance Programs like Nehemiah and Ameridream are currently set to expire on September 30th. There is new legislation presented to extend these programs, but as of now, the termination of the programs is on our doorstep.
I wish all of you a great Back to School season.
Your Mortgage Partner For Life