Underwriting: owner occupied loan by child providing for a parent

[Steven Bennett]

Hi folks,

I have a question regarding Fannie Mae's owner occupied financing option for "Children wanting to provide housing for parents":

https://www.fanniemae.com/content/guide/selling/b2...

What information about my parents would an underwriter require to qualify me (the child) for such a loan?

Is citizenship or US residency of my parents a factor for the underwriter in this case?

Context:

1. I've owned a condo in Seattle WA for more than 1 year and have an owner occupied conventional loan for it.

2. There is a similar unit in the same condo that I'd like to buy for my parents' use when they visit. The building has an owner occupancy below 50%. Due to to the owner occupancy rate the building does not qualify for Fannie Mae conforming investment loans (only owner occupied loans). This is why I'm forced to evaluate the "children provide housing for parents" option rather than an investment loan.

3. I am a green card holder but my parents are still Canadian citizens living in Vancouver BC (about 2.5 hours away) and have not started their green card application.

Thanks for your help on this topic and any advice that you might care to share!