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Kiddie Condo Loans a Great Strategy for College Students and Their Parents!

Also, don't let the nickname fool you. This program can be used on virtually any property, not just condos

Despite its relative obscurity, a great investment tool for college bound students is growing in popularity among savvy college parents. The FHA loan program, affectionately nicknamed "Kiddie Condo Loans", is one of the best programs out there to help jump start a student's credit and provide a low down payment option for cash strapped parents to purchase a home for their son or daughter.

There are few programs, if any, left in the market place where a co-signer doesn't have to live in the property. The bottom line is a college bound student can qualify, with a relative or parent's help!

The FHA program actually requires 3.5% percent down. However, the down payment can come as a gift from several different places, such as:

  1. relative by blood, marriage, or law
  2. The borrower's employer
  3. The seller (can give up to six percent) for closing costs. 

Obviously, there are some ground rules for the program, some of which are:

  1. At least one of the buyers (usually the college student), must occupy the home. But extra bedrooms can be rented out to help defray the costs of the mortgage.
  2. Qualifying guidelines are based on the student's and the parent's credit and income.
  3. If it is a condo, then a majority of the condos in the complex must be owner occupied.

Contact us today to get started with your FHA Loan process!

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