top of page

Help Your Parents Buy a Primary Home With the "Elder Condo" Loan

Updated: Oct 12, 2023

When it comes to mortgages, the best rates go to those who plan to live in the home they're buying - that's called "owner-occupied."

But here's the twist: Fannie Mae, the lending rule maker, gives a nod to a special case. You can buy a home as an "owner-occupied" residence even if you're not moving in. This exception shines when you're getting a home for your elderly parents - it's known as the "Family Opportunity Mortgage."


Buying a home for aging parents Fannie Mae says, "Sure, kids can provide a home for elderly parents if they can't handle a mortgage themselves."

No need to put your parents on the loan. You can supply them a home and still get sweet rates, fees, and lending flexibility, just like buying your own pad. And guess what? You don't have to live there with them! They can move in, and you can stay where you are.

Without Fannie's generosity, buying for parents would mean second home or investment property status. Second homes must be far away, and investment properties demand hefty down payments and high rates - not great.

But the Family Opportunity Mortgage keeps things easy. With just 5% down (vs 20-25% minimum down on an investment property) and mortgage insurance, you're in. On a $400k home that would mean bringing $20k instead of $80-100k. That's a big deal.

With assisted living costs soaring, this mortgage tool could be highly cost-effective. Monthly payments might beat nursing home bills.

To qualify for a Family Opportunity Mortgage, meet Fannie Mae's general lending guidelines, plus a few extras:

  1. Proof you're related to your parents, especially if last names don't match.

  2. Parents' pay stubs, if they have any.

  3. Parents' Social Security award letter (to show they can't swing the mortgage alone).

If it sounds like you qualify, ping our mortgage whizzes for a free rate quote. They might just help you score a dream home for your parents.

DISCLAIMER: This informational is educational in nature only. Loan product availability and qualification requirements are constantly changing. If you'd like to learn more about a product, please contact one our our highly qualified loan officers.

12 views0 comments


bottom of page