Have you heard of the family opportunity mortgage? This is another mortgage option for you. It is a primary residence loan with minimum down for certain qualifying situations. This could keep you from having to do an investment loan which requires a 20% down payment and it’s usually at a higher interest rate. This is a mortgage for family members who need or want to help each other out. Here are some example situations where the family opportunity mortgage could be helpful – Parents who are purchasing or refinancing a primary residence for a disabled child who is unable to work or who has insufficient funds to qualify for a mortgage; an adult who needs to purchase or refinance a primary residence for an aging parent who is unable to work or doesn’t have enough income to qualify for a mortgage; a college child who is living in a one unit second home residence purchased by their parents. There are many ways to use this loan to help your family or a family member, but there are also some restrictions that apply. Check with your lender for more details about this program.
Are there any mortgage insurance companies that are willing to back this? While the 20% isn’t required for the loan, I haven’t been able to find any companies that will insure this, which means that you still have to put the 20% down.