Fannie Mae is making it easier for you to support your aging parents with the ‘Family Opportunity Mortgage’. The Family Opportunity Mortgage is the informal name given to a purposeful allocation in Fannie Mae’s lending guidelines, allowing borrowers who already own a home to purchase a second one for an aging parent at the same terms as a primary residence.
The benefit of doing so with these guidelines is that your client will get the same terms as someone buying a primary residence. That means a lower down payment requirement and standard mortgage rate.
To qualify, general guidelines include:
620+ credit score
Automated underwriting approval
Steady employment
Income to support your current housing costs and the additional home
This type of loan means you can take advantage of the possible cost savings of at-home care versus assisted living. It also provides the added benefit of home appreciation. Your parents can live nearby, and still have their independence.
Because of the complex and non-traditional nature of the Family Opportunity Mortgage, not every lender can offer it. If you or anyone you know has aging parents that may benefit from this program, let us connect you with the right lender to see how the Family Opportunity Mortgage can work for you!
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