Financing in 85209>Question Details

Bauerlaken, Home Buyer in Gilbert, AZ

My parents are looking for a "2nd" home loan to purchase a home for us in the 85209 area. Problem is...

Asked by Bauerlaken, Gilbert, AZ Sat Feb 6, 2010

My parents are looking for a "2nd" home loan to purchase a home for us in the 85209 area. Problem is... we dont have the 10% now. Can anyone offer advice? Thanks :)

We are open to pwner carry backs, assumables, etc!

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I believe there may be an easy solution. If any of you and your spouse are able to go onto the loan, you parents can be what is called a "NON-OCCUPANT CO-BORROWER". FHA allows co-borrowers that are not going to live in the property so long as the primary borrower will occupy. This allows you to purchase a home with 3.50% down. This is aka "Kiddie Condo". It is the nickname of how the loan is structured. Do not be fooled by the name, it is not limited to condos.

In order to know if you would qualify under the structured scenario, I would have to know more about both you and your parents to be able to determine if you can qualify for the loan.

If you'd like, give me a call and we can review your options.
Ted Canto
Web Reference:
1 vote Thank Flag Link Sat Feb 6, 2010
Hi Bauerlaken,

Ted gave a great answer below.

If your parents don't have the required minimum to purchase the home and you cannot be added to the loan and have your parents listed as non-occupant co-borrowers, then my advice is for you or your parents to save up the minimum required down payment if you want to buy a home.
Seller financing (owner carrybacks) usually have higher down payment requirements and usually have higher interest rates. Also, assumable loans still need the new buyers to qualify for the loan and without the right qualifications, you cannot assume the loan.

Discuss this with a mortgage banker/broker, like Ted Canto.

Exlucsive Buyer's Agent
Web Reference:
0 votes Thank Flag Link Sun Feb 7, 2010
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