A home for your elderly parents. 95% LTV, owner occupant rate.

[Chris Mason]

I really enjoy doing these mortgages. 

If you are buying a home for your elderly parents, or "handicapped or developmentally disabled adult child," in California, then we offer the application of principal residence guidelines & interest rate pricing - instead of investment property! Think about that for a moment.

If you're into trivia, there's something in the corporate lore about the company founder buying a home for his mother a zillion years ago or something. Whatever.

What this means, down to earth:

• 95%-97% LTV, with either borrower paid monthly PMI (that drops off once you've got the equity), or lender paid PMI.
• Primary residence interest rate pricing.
• You are going to promise not to convert it to a rental property... for 12 months.
• Purchase or refinance! If you purchased that home for mom to live in with an investment property interest rate, it's probably worth revisiting that mortgage -- with my team.

Are you currently paying for mom or dad to live in a retirement home, a scenario wherein you gain zero equity and cannot convert it into a rental after they no longer have use of that space you are providing for them, essentially doing the right thing but burning money every month as a result? Yeah, let's see if we can't find a more productive way for you to do the right thing and take care of mom and/or dad.

This snippit below is directly from our underwriting guidelines:

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Principal Residence Properties

A principal residence is a property that the borrower occupies as his or her primary residence. The following table describes conditions under which Fannie Mae considers a residence to be a principal residence even though the borrower will not be occupying the property.

Borrower Types	Requirements for Owner-Occupancy
Parents or legal guardian wanting to provide housing for their physically handicapped or developmentally disabled adult child	If the child is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the parent or legal guardian is considered the owner/occupant.
Children wanting to provide housing for parents	If the parent is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the child is considered the owner/occupant.

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You're doing the right thing. You should receive Karma rewards, and now you can. Feel free to reach out with any questions you might have about how to provide housing for your elderly parents, while simultaneously building wealth instead of burning it.

Note that there is no provision prohibiting a live-in nurse or caregiver from living there with your parental units, either in another bedroom or, if it's a 2-4 unit, in another unit. But the primary intention/motivation is supposed to be to take care of your mother or father.

This is primarily a superior alternative to nursing homes, and we will proudly offer you the same interest rate pricing and LTV max as we would a home for you and your immediate family instead of investment property, because we recognize that you aren't going to abandon your mother any sooner than you'd abandon your spouse and children.