Yes, you can! And in many cases, at least in the program that I am highlighting here, it is treated as an owner-occupied loan, even though your parents will be the ones living there. This means you get a better interest rate and qualify for lower down payment requirements.

This allowance to buy for parents, but have it considered owner-occupied, is dubbed by many as the “Family Opportunity Mortgage”, and I first blogged about it in 2014, found here.

These are the requirements:

  • Loan amount must be in the conforming or high-balance loan limit (no Jumbo). Current high balance loan limit in Bay Area counties is $765,600 (UPDATED 1.2023: max loan amount is $1,089,300!)
  • Single-family home, condo or townhouse are all acceptable
  • 5% minimum down payment/equity requirement
  • You must qualify with both your current housing payment as well as the parents’ proposed housing payment
  • Parents cannot be on the loan or title
  • A letter stating the purpose of the loan, the parents’ inability to afford the mortgage payment and their intent to occupy is a requirement. Do note that it is underwriter discretion to request a copy of the parents’ tax returns to verify they cannot afford the housing payment.
  • We can also refinance into this program!
  • It is okay if you own rental properties

This same allowance applies if you have a disabled adult child and are looking to support them financially with a home purchase.

Please contact me directly if you have specific questions or if I can assist you with this kind of loan. I can help anyone looking to buy or refinance in California.