1. Kiddie Condo:
An Investment in Your Family’s Future
“San Diego Creative Investor Association make no warranties regarding vendor products or services offered.”
Thom MacFarlane
Mortgage Banker- Home Loan Broker
NMLS #282091
CA DRE #01210469
Email: thom@sibloans.com
Office: 858-485-0462
Fax: 866-408-1408
www.homeloanwisdom.com
www.sibloans.com
Poster ID on SDCIA:
homeloanwisdom
Use of Kiddie Condo
Parents can stop paying rent for their kids. Get a tax deduction and let it offset the mortgage by
collecting some roommate income
Buy the equivalent of a 2nd home with kids already there to visit
Kids – Ask your parents for a leg-up on your first home/investment
An aspiring home/investment purchaser, who may not have the continuity of income to qualify for a
mortgage loan on their own, can bring in a blood relative as a co-borrower
The name “Kiddie Condo” might sound juvenile but it’s a nickname for FHA’s nonoccupant
co-borrower loan program to purchase a condo, single family home or a townhome.
Intended for use by parents of college students to house their off-campus housing, this
program has been used by families as the foundation of their investment property portfolio.
Benefits of Kiddie Condo Loan:
Only 3 ½ down payment as this is an FHA insured loan
The down payment can come from the non-occupying relative
Blended debt-to-income ratios means the lender is allowing the
non-occupant borrower (money making blood relative or parent) as
the primary source for income qualifying
A Fannie or Freddie conventional loan would require up to 25% down
in this scenario to use blended ratios
Relationship Rule – Expanded beyond parents as blood, marriage,
law or a proven long-term family-like relationship can be used to
access this loan program
Qualifying:
All borrowers including “Kiddie” and relative must sign note and agree
to loan terms
Everyone on the loan must be credit worthy
If “Kiddie” doesn’t have credit history yet than alternative credit can
be verified using cell, utility, insurance or other bills to establish credit
worthiness
First-time buyer or seasoned investors are encouraged to contact me. I would truly enjoy exploring
financing options to increasing your wealth.