Thursday, May 29, 2014

Aging Parents

Adult children may purchase a primary residence for their elderly parents and it's considered a Primary Residence (not 2nd home, not investment).  This allows for the most favorable rates and terms.

Here are the requirements ... 

·         Adult children purchasing or refinancing (NCO refinance only) a primary residence for elderly parent(s) who are unable to work or have insufficient income to qualify for a mortgage (Max LTV subject to MI eligibility requirements)
o    Elderly parents must be unable to work or not have sufficient income to qualify for a mortgage on their own. The adult child must provide a letter of explanation outlining the intent to purchase a home for elderly parents who are financially limited
o    The parent(s) will occupy the subject property as their primary residence
o    The adult child may already own his or her own primary residence
o    Assisting an elderly parent has no distance requirements on where the adult child’s primary residence is located
o    Property must be registered, underwritten and priced as a primary residence
o    The subject property must be submitted to DU as the primary residence and the borrower’s current primary residence will be listed as other real estate owned
o    The parent(s) and adult child can both apply for the loan, but the child is the primary source of qualification. The parent is not required to be on the loan

o    Title must be in the borrower(s) name, but the elderly parent(s) may also be on the title

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