This program by FHA allows full time students the opportunity to purchase a home with the assistance of their parents credit and down payment even if the student has not established any credit.

With an FHA Kiddie Condo loan program, at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments.

This type of mortgage allows a person to co-borrow with a blood relative (eg. parent, grandparent, sibling, etc.) who helps qualify for the loan using their income or assets.

Kiddie Condos have a very low down payment required of 3% and can be counted as an owner occupied property instead of a second or vacation home which gives you better rates and certain tax advantages.

This is a great way for a parent to obtain a "return on investment" from having a child in College. One can purchase a townhome, etc. with their child near campus. Instead of paying rent on campus housing, an investment is being made.

 

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