Thinking of purchasing a house for a disabled adult child or parent? Are you unable to qualify for a mortgage due to a disability? While this program no longer has a brandable name, it’s the perfect fit for specific borrowers. Let’s set the stage with my scenario: Currently renting, my prospective client wants nothing more than to be a homeowner. Disabled from a young age, the sense of independence that comes with homeownership has become rare air. The problem? Never enough income to qualify. A couple of sentences in Conventional guidelines make a world a difference for prospective homebuyers with disabilities: Fannie Mae will consider the residence to be a principal residence even though the borrower will not be occupying :
Parents or legal guardian wanting to provide housing for their handicapped or disabled adult child
If the child is unable to work or does not have sufficient income to qualify for a mortgage on their own, the parent or legal guardian is considered the owner/occupant.
Notice how they use the term “adult child?” The disabled occupant can’t be a minor. In that same vein, determining legal agreement competency must be addressed. When a party to the purchase contract is mentally disabled in a manner that disqualifies their competency in entering legal agreements, he/she is ineligible to sign purchase and mortgage documents.