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FHA Kiddie Condo Loan
Buying your first home is a big commitment and mortgages can be
extremely expensive. However if you are a first time homebuyer there is a
loan option that is specifically designed for young adults purchasing
their first homes. This loan is designed to provide a way for parents to
help their young adults into a home. These loans have a lot of benefits
and could save you money if you qualify.
Don’t let the name fool you,
the property does not have to be a condo, single-family homes are included
in this FHA loan program.
The FHA 'Kiddie Condo Loan' is an incredible
alternative for college students or those looking for a credit program
that will permit them to have co-borrowers. Fundamentally what this credit
system does is permit blood relatives to co-borrow on a FHA loan, which is
the reason this stands out to students. College students (who have little
to no credit) can utilize their parents' credit as co-borrowers to use on
a property for the school year. This program additionally, can be valuable
for moving after a divorce as well. There are some general guidelines in
the event that you are considering taking out a FHA 'Kiddie Condo Loan'.
Guidelines
While this project is super simple to use, there are two things to keep in
mind. A) the co-borrowers must be blood relatives and B) at least one of
the co-borrowers must reside at the property. The FHA 'Kiddie Condo Loan'
is a great tool for home buyers at many different stages in life and the
guidelines are extremely easy to operate within.
Since the housing meltdown in 2008-2009, federal
guidelines are much stricter now for all mortgages, including 'Kiddie
Condo Loans'. Prior to 2008, a child with no income and no credit score
could get such a loan with a family member as co-signer, according to the
U.S. Department of Housing and Urban Development. The parent's credit
score (usually higher) was used to qualify for the loan. However, under
today's stricter lender guidelines, the lowest credit score among the
borrowers is used to qualify for the loan. The borrower with the lowest
credit score is usually the person who plans to live in the home.
Lenders
While the FHA 'Kiddie Condo Loan' is special in many ways, it's really no
different than a regular FHA loan. Because of the unique guidelines of
this loan program it is vital that you work with a qualified lender (see
recommendations below). The FHA 'Kiddie Condo Loan' is not new, but rather
contract regulations can change quickly and an educated lender will know
the best ways to adjust to any changes.
Rates
Interest rates for FHA 'Kiddie Condo Loans' are typically
the same as FHA rates. Getting the best rates on your loan can also be
exceptionally reliant on the quality and information of the lender you
choose. One critical thing to consider about this project is that 96.5% is
the most extreme measure of financing on a single family home that can be
received. Alongside that, whoever is making the actual payments to the
home loan will be able to receive tax reduction.
Versatile Loan
The FHA 'Kiddie Condo Loan' program is a very popular option with college
students, yet borrowers can get imaginative with approaches to actualize
this project. While the title says “condo”, this really implies a single
family unit and it is not just for college students! The FHA 'Kiddie Condo
Loan' program can help ease some huge money related weights like the
staggering costs of school or any unanticipated financial burdens. This
program has a wide range of use and in the event that you meet the
essential guidelines, then this could be the right loan program for you.
This loan program provides insurance for both the lender and borrowers.
The lenders have the the insurance that many incomes will be able to help
pay the loan and keep the borrower in good standing with the loan. The
borrowers will be able to take advantage of a very low down payment of
around 3% of the home value. This is a huge drop in comparison to most
conventional loans which can range up to 20% down. There are also very low
competitive interest rates on 'Kiddie Condo Loans'. Other lenders
will would require a high interest rate because the parents will not live
on the property, however with this program you can qualify for a
owner-occupied interest rate. These interest rates have the capacity to
save you lots of money on monthly payments towards your mortgage. This
programs also allows for the homeowner to establish good credit with the
protection and coverage from their parents. This works because the credit
of the parents is what helps the loan approval process, but the home
owing, and mortgage payments will help the credit of both the parent and
child. However, this is only if payments are made on time and in full to
stay on good standing.
Qualifications
The qualifications and requirements for a FHA Kiddie Condo Loan are
not extensive. One of the borrowers is required to live on the property as
their primary residence. Again, don’t
let the name fool you, the property does not have to be a condo,
single-family homes are included in this FHA loan program.
As an expert Denver
area Realtor with RE/MAX Alliance, I'm happy to recommend local FHA
Mortgage Lenders who understand the FHA 'Kiddie Condo' mortgage loan process and will work
hard to secure the best loan rates and terms possible.
Get Pre-Qualified for a
FHA Kiddie Condos Loan
Today!
Preferred FHA Mortgage Lenders for
Anthony Rael, RE/MAX Alliance - Denver Realtor
* Union Home Mortgage - Tiffany
Swisher @ 303.884.4137
* Home
Mortgage Advisors - Deana
Hollstein @ 303.818.0522
* Nexa
Mortgage - Lainie
Chambers @ 720.495.2788
Buyer 24-Month Investment Protection
Program
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