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The Local Element Mid Michigan

Real Estate Agency

You Can Help Your Elderly Parents or Disabled Child Buy a Home with the Family Opportunity Mortgage!


Are your parents or disabled adult child looking to buy a new home? If they cannot finance the home by themselves, you might be able to help them! The Family Opportunity Mortgage makes it easy for children to buy or refinance a home for their parents. It’s also possible for parents to buy a home for their temporarily or permanently disabled child. 

Let’s dive into the Family Opportunity Mortgage — what it is, how to get one, the benefits, and other ways to help your family member in case this option isn’t the best fit. 

What is The Family Opportunity Mortgage?

Mortgage down payments and interest rates are typically more pricey on a home you don’t plan to live in full-time. However,  this is not the case with ‘The Family Opportunity Mortgage’. This mortgage option will allow you to buy a home for your parents or child as if it were your primary residence. While the buyer would be considered an owner-occupant that doesn’t mean they have to live there. 

As long as they meet certain requirements (which we will cover below ⇓) it will be simple to get a mortgage for your disabled adult child or elderly parents.

qualifying for the family opportunity mortgage

Who Qualifies as 'Family' For The Family Opportunity Mortgage?

So who exactly is considered family in this case? 

The borrower must be:

  • The parent or legal guardian of the adult child residing in the property
  • The child of an elderly parent living in the residence

The co-borrower can be:

  • Any individual (no relationship required) that claims one or more rooms in your home as their space.

Special case: Any family member can seek the Family Opportunity Mortgage program if either or both parents are currently living in a care establishment. However, the elderly parent(s) must plan to move to the new home post-closing. 

What are the Requirements for the Family Opportunity Mortgage?

  • A credit score of 620 or more
  • A debt to debt-to-income ratio of 45% 
  • Employment with a steady income. You must be able to cover your own housing in addition to the new mortgage.
  • The elderly parents or adult child can’t afford the home on their own.
  • The elderly parent(s) or adult child must live in and designate the home as their primary residence.
  • The elderly parent(s) or adult child cannot have owned a home within three years of the initial closing date.

What are the Advantages of The Family Opportunity Mortgage?

  • It is a more affordable down payment
  • The interest rates are lower
  • There are no occupancy requirements 
  • Distance does not matter
  • Could potentially be cheaper than assisted living

What Properties are Eligible for The Family Opportunity Mortgage?

  • The property can not be a timeshare or an investment home
  • The home must be a single-unit dwelling
  • The borrower must be the main person in control of the home
  • The home must be suitable to live in year-round
  • The property owner may not allow a management firm to take over the control of the home

Still not sure if this program is the right fit for you and your family member(s)?

If you are looking to give your disabled child a form of independence while still having peace of mind knowing that your child is living in a nearby safe place, then you may want to dive deeper into this program.

Additionally, paying for assisted living out of pocket can be expensive. This program could allow you to pay for in-home care and an additional mortgage while still being more affordable than assisted living.

However, we know everyone’s situation is different. Your family will have to weigh the pros and cons of owning a second home or paying for a form of assisted living. 

Please note that some lenders don’t offer Family Opportunity Mortgages. We would love to connect you to a variety of local lenders in Mid Michigan who might be able to help OR who would be able to find a solution that works best for you and your loved ones.

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