Did you know 77% of adults 50 and older want to remain in their homes long-term, a statistic that has remained consistent for decades? While that feels daunting if you’re the child or loved one of an aging adult, there are solutions that can help honor your parents' or grandparents’ dreams of aging in place. One that doesn’t get nearly the attention it deserves is Family Opportunity Mortgages.
Although, 'Family Opportunity Mortgage' has been discontinued, the parameters of the loan remain the same - a conventional loan with expanded guidelines to allow owner-occupied financing under special circumstances. A Family Opportunity Mortgage could help your elderly loved one live in a house down the street, comfortably settled in familiar surroundings, with family just around the corner. It feels like a win-win, doesn't it?
Here’s how it works:
A Family Opportunity Mortgage allows homeowners to finance homes for their elderly parents or disabled adult children without classifying it as an investment property.
Benefits:
Better loan rates: Treated as owner-occupied, so it usually comes with a more favorable rate.
Lower down payments: The purchase can be made with as low as 5% down payment, making this option much more financially accessible than a conventional mortgage.
Diverse property types: A Family Opportunity Mortgage is potentially available for various property types, such as single-family homes, condos, or apartments.
Considerations:
Limited availability: Not all lenders offer this type of mortgage, so you might need to shop around.
Qualifications: Your income, must be high enough to cover the mortgage loan for your primary residence PLUS the residence you want to buy for your parent or dependent child.
Location matters: Some lenders may require that the property be close to your residence.
If you would like more details or want to know local lenders who offer this type of mortgage, reach out! It's time to turn the tables on traditional living solutions!
Hey Inland Empire, I’m Candice Newman! I’ve had the incredible fortune of being born and raised in this amazing community, and I couldn’t imagine living anywhere else. I currently live in Alta Loma with my husband, Jonathan, our son, Trevor, and our dog, Ruger! I’m a real estate agent with a passion for finding new places to explore in the Foothill Communities. When I'm not selling homes, you can find me cheering my son on at his baseball games, exercising, spending time in our local mountains, heading to the lake, cooking, or watching the Dodgers slay the Giants (I was born and raised an Angels fan, but the Dodgers have taken over the household!). I'll never have enough Mexican food and Italian food in my life. I’m looking forward to connecting with you soon! See you around town!Candice.Newman.Realty@gmail.com | (909)367-3280 DRE: 01924842
Source: New AARP Survey Reveals Older Adults Want to Age in Place
What Is a Family Opportunity Mortgage? How Does It Work? | SoFi
Comments