Is your son or daughter about to head off to college? Congratulations – it is a big step. In the event that you found this post, that means you are at least thinking about buying a condo somewhere near campus and trying to figure out if it makes financial sense and what the options for a mortgage are.
It is also possible that either friends or family members mentioned the term “kiddie condo loan” or “kiddie condo mortgage” and chances are you had never heard of it before and are now searching for more information.
Kiddie Condo Loans: Are They Real
The good news is yes, kiddie condo loans are real and yes, plenty of people get kiddie condo mortgages every day. But the good news doesn’t stop there. Even better news is that the kiddie condo loan program is really an FHA loan that is technically called a non-occupying co-borrower loan. That is a long name for a loan program – hence the nickname of “kiddie condo loan”. And the good news keeps on coming – the best news of all is that the kiddie condo loan program doesn’t have to do with kiddies or condos – the truth is you don’t have to be a kiddie to qualify for them and the property you buy doesn’t have to be a condo.
Kiddie Condo Mortgage Guidelines
The mortgage guidelines for the kiddie condo loan program are a little different because in the even that one or more of the borrowers will not occupy the property as their principal residence then the following rules will apply:
- The maximum loan to value will be 75% unless the borrowers are related by blood, marriage or law (except for rare circumstances) or for properties that are 2-4 unit properties
- Everyone who is on the loan, must sign the loan documents and is fully liable for repayment on the loan
- Everyone who is on the loan must meet the credit score guidelines set by the lender (typical minimum credit scores for an FHA loan is 620)
- Rules are established so that parents can’t develop a portfolio of rental properties.
Kiddie Condo Mortgage Rates
The rates on kiddie condo loans should be the same at your lender as a regular FHA loan. If your lender is telling you that there are higher interest rates for kiddie condo loans, then you need to find a different lender. Here are just a few lenders in your area who can provide you with a free rate quote based on todays mortgage rates.
Get The Best Deal
Getting the best deal on a kiddie condo loan is relatively easy – all you need to do is shop around to a few FHA approved lenders who can give you a rate quote in writing. Getting a rate quote from a lender is free, takes only a few minutes and once you have a rate quote in writing you can compare them all and see who has the best deal. Sending a son or daughter to college is expensive enough – no need to waste money by not shopping around and getting the best deal on your kiddie condo mortgage. Get a free kiddie condo mortgage quote today – right here!Click to See the Latest Mortgage Rates»