This program by FHA allows full time students the opportunity to purchase a home with the assistance of their parents credit and down payment even if the student has not established any credit.This type of mortgage allows a person to co-borrow with a blood relative (eg. parent, grandparent, sibling, etc.) who helps qualify for the loan using their income or assets.
Kiddie Condos have a very low down payment required of 3% and can be counted as an owner occupied property instead of a second or vacation home which gives you better rates and certain tax advantages.
With an FHA Kiddie Condo loan program, at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments.
This is a great way for a parent to obtain a "return on investment" from having a child in College. One can purchase a townhome, etc. with their child near campus. Instead of paying rent on campus housing, an investment is being made.
Is this ONLY for a college ages kid? Can a parent do the same thing for an adult aged child going through a nasty divorce? She doesn't work, and it cannot be a true non occupant co borrower because she is not yet divorced. Her father wannts to buy her a house, but doen't have more than 3% to put down. Therefore the FHA kiddie condo program would be perfect if they will allow someone older than college age. Any ideas?
