Family Opportunity Mortgage

Any one familiar with this?
We are studying the possibility of purchasing a place for my parents to live closer to us. They can't afford nor will they qualify for a mortgage of their own and I found this could be an opption for us. In essence is a 2nd mortgage for a 2nd house (not considered an investment, not for rental purposes) under our name and not theirs.
Any advice would be appreciated. Thanks.

Re: Family Opportunity Mortgage

Different banks have different requirements but the basics are that you can buy a house for elderly parents and not have to treat this 2nd house as a rental property. From what I understand that means you'd probably have a lower interest rate than you would on a rental property.

Your parents' income would have to be too low for them to qualify for a mortgage on their own.

I think another benefit might be that you can pool your resources and credit histories but you don't have to.

Did you have specific questions?

Re: Family Opportunity Mortgage

thanks bobby. that is what I was expecting. Now to start looking for bank.

Re: Family Opportunity Mortgage

i could be wrong but it looks like Chase is the only offering a product called FOM.

http://investor.shareholder.com/jpmorganchase/releasedetail.cfm?releaseid=261388

That doesn't mean other banks aren't offering the same thing. They may just be calling it something else.

Make sure you fully look at your options because I'm not sure I see many benefits to a FOM.
Maybe the benefit of a lower interrest rate on a 2nd property but I think I may have heard that rates on 2nd props are quite low any way.