The Family Opportunity Mortgage: Keeping Aging Relatives Independent, Closer to Home

Did you know that approximately 77% of people aged 50 and older express a strong desire to remain in their homes for the long term? This trend has been consistent over the years, highlighting a significant preference among older adults for stability and familiarity in their living environments. The desire to age in place is driven by various factors, including emotional attachment to their homes, community connections, and the comfort of a familiar routine.

For those navigating the prospect of moving an aging loved one, there exist solutions that can align with the aspirations of parents or grandparents to age gracefully in familiar settings.

The Family Opportunity Mortgage presents an opportunity for grandparents or parents to reside comfortably in a nearby home, surrounded by a familiar environment and with family nearby—a mutually beneficial situation. Curious about how it works?

This mortgage option enables homeowners to finance homes for elderly parents or disabled adult children without categorizing them as investment property.

Advantages include:

• More favorable loan rates: Treated as owner-occupied, it often comes with advantageous interest rates.

• Reduced down payments: The purchase can be facilitated with as little as a 5% down payment, rendering it financially more accessible than a conventional mortgage.

• Versatile property options: The Family Opportunity Mortgage extends to various property types, including single-family homes, condos, or apartments.

However, it's essential to consider:

• Limited availability: Not all lenders extend this mortgage type, necessitating some exploration.

• Qualification criteria: Your income must be sufficient to cover the mortgage for your primary residence and the property intended for your parent or dependent child.

• Geographic considerations: Some lenders may require the property near your residence.

Feel free to reach out if you want further details or information about local lenders offering this mortgage type. It's time to reimagine traditional living solutions!

Please note: The term 'Family Opportunity Mortgage' has been discontinued, but the loan's parameters persist—a conventional loan with expanded guidelines facilitating owner-occupied financing under specific circumstances.

Source: Insights from a Recent AARP Survey on Aging in Place

Understanding the Family Opportunity Mortgage: Mechanics and Functionality | SoFi