720-323-0383Apply NowFAMILY HELPING FAMILY
Help your favorite people own a home.
Explore ways to create stability, independence, and a place to belong while protecting the financial security and relationships of everyone involved.
Best for: Families comparing gifts, co-borrowing, co-ownership, and other ways to help.
See what may be possible
FAMILY HOMEOWNERSHIP PLANNER
Start with what you want their life to look like.
A large cash gift is only one possibility. Depending on who will live in the home and how everyone qualifies, the options may include structures commonly called a Family Opportunity Mortgage or an FHA Kiddie Condo.
Those names sound like separate mortgage products. They are not. They describe specific ways standard Fannie Mae or FHA guidelines may be used. Choose the statement closest to your situation to explore what may fit.
A PLACE TO BEGIN
Use cash or home equity to change the starting point
A down-payment contribution may reduce the amount your child needs to borrow or help them keep more savings after closing. The contribution could be a documented gift or family loan. For an equity-rich, cash-light homeowner, a HELOC or home equity loan may also provide the funds, but the cost and risk should be reviewed first.
- Down-payment or closing-cost gift
- Documented family loan
- HELOC or home equity loan used by the helping family member
A PLACE TO BEGIN
Create support with clear expectations
A family loan can provide temporary help while preserving the expectation of repayment. The terms and payment must be documented and considered in the buyer’s qualification.
- Documented family loan
- Short-term help until another asset sells
- Formal repayment or equity agreement
A PLACE TO BEGIN
Add qualifying strength when income is the barrier
A qualified co-signer or non-occupant co-borrower may increase buying power when the buyer’s income is the limiting factor. This can help a family member buy a first home or begin again after divorce before support income can be counted. The co-signer’s income may help, but their credit, debts, and housing obligations are also considered, and they become legally responsible for the mortgage.
- Non-occupant co-borrower
- Joint qualification with a clear payment plan
- A future refinance plan, when appropriate and available
A PLACE TO BEGIN
Bring a parent closer without forcing the wrong occupancy box
Fannie Mae guidelines allow a child providing housing for a parent who is unable to work or does not have sufficient income to qualify independently to be considered the owner-occupant, even when the child will not live in the home. This exception is often called a Family Opportunity Mortgage, but it is not a separate loan product. The plan still needs to account for qualification, ownership, payment responsibility, maintenance, and what happens if your parent’s needs change.
- Fannie Mae owner-occupancy exception, often called a Family Opportunity Mortgage
- A child purchases a one-unit home for a parent to occupy
- A long-term plan for payments, maintenance, care needs, and an eventual sale
A PLACE TO BEGIN
Create a home that supports greater stability and independence
Fannie Mae allows a parent or legal guardian who provides housing for a disabled adult child to be considered the owner-occupant when the child is unable to work or does not have sufficient income to qualify independently. This may make owner-occupied principal-residence terms available even when the parent does not live in the home. The right plan starts with the child’s long-term housing needs, the family’s financial security, and who will own, occupy, and maintain the home.
- Fannie Mae owner-occupancy exception, often called a Family Opportunity Mortgage
- A parent or legal guardian purchases the home for the adult child to occupy
- A long-term housing plan coordinated with legal, tax, benefits, and estate professionals
A PLACE TO BEGIN
Turn the college-years housing question into a homeownership possibility
An FHA loan may allow a parent or another eligible family member to join the mortgage as a non-occupying co-borrower while the student occupies the home as their principal residence. Often called an FHA Kiddie Condo, this is not a condo-only product or a separate loan program. It is a family co-borrowing structure that may help a student with little or no qualifying income own the home they live in.
- FHA financing with an eligible non-occupying co-borrower
- A one-unit principal residence when maximum financing is needed
- A clear plan for ownership, monthly costs, roommates, maintenance, and what happens after college
A PLACE TO BEGIN
Let two housing needs solve for each other
A multigenerational purchase can combine resources and create support in both directions. Ownership, privacy, future care, and the exit plan should be discussed before the floor plan.
- Multigenerational purchase
- Co-borrowing or co-ownership
- ADU or separate living-space strategy
4 questions to protect the family and the plan
THE FAMILY HOUSING WEALTH CONVERSATION
Before you choose a path, get clear on the responsibility.
- 01What does the helping generation need to remain financially secure?
- 02What income, savings, equity, or real estate could play a role?
- 03Is the support a gift, loan, ownership interest, or early inheritance?
- 04What happens if someone’s health, income, timing, or plans change?
The non-negotiable: Helping family should not create financial insecurity for the person providing the help. Retirement, estate, tax, or legal considerations belong with the appropriate professionals.
QUESTIONS WORTH ASKING
A few family-financing terms worth understanding.
What is a gift of equity?
A gift of equity happens when a homeowner sells a property to an eligible family member for less than its appraised value and gives part of the equity to the buyer as a credit. When the loan guidelines allow it, that credit may help with the down payment and closing costs. It is different from transferring cash, and the purchase contract, appraisal, ownership relationship, and gift documentation all matter. Read Fannie Mae’s gift-of-equity guidance.
Is a gift of equity the same as a cash gift?
No. A cash gift is money transferred to the buyer from an eligible donor. A gift of equity is value transferred by the seller through a below-market family sale. Both require documentation, but they are structured differently.
Can I buy a home for my parent and use owner-occupied financing?
Potentially. Fannie Mae guidelines state that when a parent is unable to work or does not have sufficient income to qualify for a mortgage independently, a child purchasing a home for that parent may be considered the owner-occupant. This is commonly called a Family Opportunity Mortgage, although it is an occupancy exception within standard financing rather than a separate mortgage product. The parent’s occupancy, property type, the child’s qualification, and all current loan requirements still need to be reviewed. Read Fannie Mae’s occupancy guidance.
Can family members buy a multigenerational home together?
Potentially. Income, debts, ownership, occupancy, privacy, future care, and the exit plan all deserve attention. The right mortgage structure depends on who will own the home, who will live there, and how each person qualifies.
Does your question cross more than one path?
See all questions + resources“She made the entire mortgage process easy to understand.”
Riley T.Aurora, CO