There’s a secret loan program that colleges and landlords do not want you to know about. College room and board is out-of-control expensive, and the alternative of renting an apartment off campus is nearly as costly.
As colleges look to expand, the demand increases with the supply staying the same, so the cost just keeps on going up and up and up. Fannie Mae has a program that can help. It’s called the Family Opportunity Program with a 20% down payments. The parent can buy a single unit home with a conventional mortgage as a second home even though a son or daughter will live there. From a qualifying stand point, this program opens the door, because second homes have a less rigid requirement for a condo approval than investment property. An example of this is the city of Brighton, Massachusetts where many Boston college students reside.
The Owner Occupancy of the majority of condos is less than 50% – which would disqualify you from purchasing as an investment property. As a second home, Owner Occupancy is a non-issue. The condo still has to get Fannie Mae approval.
The program is intended for your child to live there, so they have to be there for at least 12 months. The program can also be used for kids that want to buy a home for their parents; so Mom and Dad, no nursing home for you.
If your child is disabled and out of college you can also use this program.
If you have any questions, please give me a call I’m here to help you.