As a veteran, you have dedicated your life to serving your country. Now, it’s time for you to take care of your aging parents. If you’re living in Wisconsin, you may be eligible for a Fannie Mae Family Opportunity Mortgage, allowing you to buy your parents a home without occupying the property. Let’s look at the benefits of this mortgage and the guidelines you need to follow to qualify.
What is a Fannie Mae Family Opportunity Mortgage?
Fannie Mae is a government-sponsored enterprise that provides mortgage financing to homebuyers in the United States. The Family Opportunity Mortgage is a loan option allowing you to purchase a home for your aging parents as an owner-occupied residence, even if you don’t plan to live there. This option is designed to help families who want to provide housing for their elderly parents but may not qualify for traditional mortgages.
Benefits of a Fannie Mae Family Opportunity Mortgage
One of the main benefits of a Family Opportunity Mortgage is that you can put as little as 5% down on the home. This reduced down payment requirement can lower the initial cost required by at least $30,000 on a $200,000 home purchase. Additionally, because the purchase is considered owner-occupied, you can obtain the same rates, fees, and lending flexibility as if you were buying your own home to live in.
Without this allowance by Fannie Mae, children buying a home for elderly parents would need to buy the property as a second home or investment property. Second homes generally need to be 50-100 miles away from your current primary residence, which may not be convenient or safe if your parents need regular care. Investment properties require a 20-30% down payment, more arduous qualification criteria, and significantly higher mortgage interest rates.
Guidelines for Qualifying
You must meet the general Fannie Mae conventional loan guidelines to qualify for a Family Opportunity Mortgage. Additionally, you may have to supply a few additional items, such as proof of relationship to the parent if it’s not apparent, the parent’s pay stubs, if any, and the parent’s Social Security award letter (to prove your parents can’t afford the mortgage on their own).
Conclusion
As a veteran in Wisconsin, you have options for providing housing for your aging parents. A Fannie Mae Family Opportunity Mortgage can be a lifeline, providing affordable financing and flexibility for your unique situation. We can connect you to a knowledgeable lending professional to learn more about your eligibility for this loan option and to obtain a mortgage rate quote.
Sources:
- Fannie Mae Family Opportunity Mortgage 2023 Guidelines, https://www.mortgage.info/fannie-mae-family-opportunity-mortgage-guidelines/
- Lenders give the best mortgage interest rates and terms on “owner-occupied” home purchase loans, https://www.thetruthaboutmortgage.com/what-is-an-owner-occupied-mortgage/
