Many users of my real estate website come to search for condos around ASU for their college bound children. The plan is that the student will live in the condo while going to school and rent extra rooms to offset the mortgage cost. FHA has a Kiddie Condo loan program designed for this situation. Essentially, the parents co-sign for the property with their son or daughter. Instead of paying higher investor interest rates, the condo is treated as owner occupied, qualifying for a lower rate.
Check out this post for more information.
Once you are qualified for the program with a lender, I can assist you in finding a condo in your price range. I have a web page dedicated to condo listings around the ASU area.
Related Link: Finding FHA approved condos
Photo courtesy meyshanworld under creative commons license
Copyright © 2008 Rod Rebello
www.TempeAgentNews.com
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{ 5 comments… read them below or add one }
This is a great program and I wish more people would use it. Maybe its from a lack of information, but not many people ask about this to begin with.
Shailesh, I appreciate your explanation of the program and hope this discussion sparks more interest. I already seem to be getting some hits off searches for the kiddie loan program, so perhaps more are becoming aware of it.
Thanks for the information. I have a further question on this post…
Can the “kid” under this program do a streamline refinance later when his/her income is sufficient to qualify without the original co-signer on the new note?
Karen, according to the FHA HUD handbook on streamline refinances, section 1-12, paragraph D, item 9, the “kid” could do a streamline refinance and drop a co-signer from title if they show they can qualify on their own, this is referred to as “Credit-Qualifying” Streamline Refinance.
Disclaimer: I’m not a loan expert, and recommend you verify this information with your lender.
People should not hesitate to get a condo or other investment property now. Rates are at an alltime low and there is a lot of available properties to be bought for amazing prices. Thank you for the good post. I will Check back again