Condos for Kids Yup, you got it right. We used to call them “Kiddie Condos”.
There are lots of reasons for “Kiddie Condos” Some adults (parents) leverage personal tax gains, some like to buy real estate instead of pay rent for a child who is going to college or who may have just graduated, the list goes on and on, but what realy is behind a Kiddie Condo
The answer is, it really has nothing to do with the real estate itself. The term “Kiddie Condo” or the action of buying a piece of real estate for a close family member like a child or sibling really has to do with the way it is financed with the local mortgage company.
Many mortgage companies or banks who do home loans have traditional Fannie Mae or Freddie Mac guidelines that follow certain secondary market rules. The three main purchasing types are – Primary Residences, Secondary Residences (2nd Home) & Investment Property. All three purchasing types associate with difference risk levels and there for different mortgage rates.
As you can see, a Kiddie Condo really doesnt fit any of the above purchasing types or sits somewhere in a gray area – ahhh – the key to working with a sharp and top notch mortgage banker.
The truth of the matter is some banks understand the Kiddie Condo concept and some don’t lucky for you, our preferred lender team here at ANTH | JAMES does.
Contact Patti or Christina for any of your mortgage of home financing needs.
Good Articles on Kiddie Condos
Kiddie Condo offers Return to parents
FHA Kiddie Condo Program