A Powerful Way to Help Your Parents or Children Own a Home

Are you looking to buy a home for your aging parent or adult child — but don’t want to be hit with investment property interest rates or down payment requirements?

The Family Opportunity Mortgage allows you to do just that.

This unique loan program lets you purchase a home for an elderly parent or a child (such as a college student or someone with disabilities) as if it were your own primary residence — even if you already own a home.

That means:

  • Lower interest rates
  • Reduced down payment requirements
  • Better terms than second home or investment loans

And yes — this program is available right here in Colorado.

Who Can You Help With a Family Opportunity Mortgage?

This loan program is designed to support families who want to provide stable, affordable housing for loved ones. It’s a great fit for:

1. Elderly Parents

If your parent can’t qualify for a mortgage due to income or credit, you can purchase a home for them using this loan — and still qualify for primary residence terms, even if they’re not on the loan or title.

The home must be occupied by your parent, not rented out.
Your parent doesn't need to be on the mortgage application.

2. Adult Children in College or With Special Needs

Parents can also use this program to buy a home for a child who’s:

  • Enrolled in college
  • Living with a disability
  • Unable to qualify on their own

As long as the child will live in the property full-time, the loan can be structured with more favorable terms than a second home purchase.

Key Benefits of the Family Opportunity Mortgage

  • Primary residence interest rates (not second home or investment rates)
  • Low down payment options (as little as 5% in some cases)
  • No need for the occupant to qualify
  • Fannie Mae backed — not a specialty or portfolio loan

This program is often overlooked, but it can be a game-changer for families providing housing support to loved ones.

Learn more from Fannie Mae
Federal Trade Commission: Co-signing and family assistance
U.S. Department of Housing and Urban Development: Housing for people with disabilities

Is There a Catch?

There are a few eligibility rules to keep in mind:

  • The family member must live in the home full-time
  • The property cannot be a rental or income-producing
  • You, as the borrower, must qualify based on your own finances

This loan cannot be used for second homes, vacation properties, or investment rentals — it’s intended strictly for family housing support.

Why This Matters in Colorado

With rising home prices in areas like Centennial, Denver, Parker, and Castle Rock, many families are stepping up to help parents or adult children afford stable housing. The Family Opportunity Mortgage offers a smart, flexible way to do it — without the financial burden of traditional second-home financing.

Let’s See If This Fits Your Family

If you're thinking about buying a home for a parent or child, I’d be happy to walk you through how this program works — and whether it’s the right fit for your situation.

Call me at 303-670-0137
Or request a consult at cohomesandloans.com/contact

Family Opportunity Mortgage FAQs

Ownership of the home is determined by the deed (title), not just the mortgage. While both the occupying borrower and the non-occupying co-borrower are typically on the mortgage and responsible for the loan, the deed can be solely in the occupying borrower's name or include both parties, depending on their agreement.

For a full explanation of Family Opportunity Mortgage ownership and its implications, please read our detailed blog post here.