The majority of aging adults want to remain in their own homes for as long as possible. It’s no secret that aging in place can improve one’s quality of life significantly. However, figuring out how to finance this can be confusing, especially when considering the high cost of housing in many areas. This is where a Family Opportunity Mortgage could be the solution you’ve been looking for. In this blog post, we’ll discuss this lesser-known mortgage option and how it can help your elderly loved ones stay at home.
What is a Family Opportunity Mortgage
A Family Opportunity Mortgage is a unique financing option that allows homeowners to purchase a property for their elderly parents or disabled adult children without it being classified as an investment property. It means that the purchase can be considered owner-occupied, which results in better loan rates, lower down payments, and potentially diverse property types.
Benefits of a Family Opportunity Mortgage
The best part about using a Family Opportunity Mortgage is that it’s a win-win situation. Your elderly parents or disabled adult children can stay in their own home or live near you, and you can use this opportunity to add an additional investment to your portfolio. Here are some of the main benefits of choosing a Family Opportunity Mortgage:
- More favorable loan rates as compared to a conventional mortgage
- Lower down payments that can be as low as 5%
- Allows for potential diversification in property types like single-family homes, condos, and apartments
Considerations for a Family Opportunity Mortgage
Before financing a home for your elderly parents or disabled adult children using a Family Opportunity Mortgage, you need to consider:
- Limited Availability: Not all lenders offer this type of mortgage, so it’s essential to shop around to find the right lender.
- Qualifications: To be eligible for this type of mortgage, your income must be high enough to cover your primary residence’s mortgage loan and the residence you want to buy for an elderly parent or disabled adult child.
Other Things You Need to Know
- It’s only available for primary residences
- The occupancy allowed is for one elderly parent or disabled adult child
- The family member using the financed property may be required to sign an occupancy certification.
In Conclusion
Figuring out how to finance your elderly parents or disabled adult children’s living arrangements can be frustrating. But a Family Opportunity Mortgage offers a solution that allows homeowners to finance a home and provide the peace of mind that their loved ones are comfortable and taken care of. While it may require some additional research and qualifications, it’s a viable option worth considering.
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