Key Takeaways
- The Family Opportunity Mortgage lets you buy a home for a parent or disabled adult child without them qualifying for a loan.
- Borrowers enjoy owner-occupied benefits like lower down payments, competitive rates, and reduced closing costs.
- Monthly mortgage payments can be more affordable than assisted living or nursing home costs, making independent housing a cost-effective option.
If you’re looking for a way to help a parent or adult child live independently, the Fannie Mae Family Opportunity Mortgage can make it possible without stretching your finances.
By offering the perks of a primary residence loan, like lower down payments and competitive interest rates, this program makes it easier to provide a stable, affordable home for a loved one. With the right planning, it can even be a smarter alternative to assisted living or other costly housing options.
In this article (Skip to...)
- What is the Fannie Mae Family Opportunity Mortgage?
- Family Opportunity Mortgage program requirements
- Family Opportunity Mortgage benefits
- Family Opportunity Mortgage FAQ
What is the Fannie Mae Family Opportunity Mortgage?
The Family Opportunity Mortgage is a special Fannie Mae program that lets borrowers purchase a home for an elderly parent, disabled adult child, or other qualifying family member with all the benefits of a primary residence loan, even if the borrower doesn’t live there.
It offers lower down payments, competitive interest rates, reduced closing costs, and flexible terms, making it easier and often more affordable to provide independent housing for a family member than other options like assisted living.
Other home loan options for elderly parents
- Second home loans — also known as vacation home loans — generally include a distance requirement, specifying that they must be at least 50 to 100 miles away from the borrower’s primary residence.
- Investment property loans generally have a down payment requirement of 20 to 30 percent, stricter qualifying financial requirements, and higher interest rates.
Co-borrower agreements could be an option for children looking to co-sign their parent’s purchase or refinance mortgage. In this instance, the loan officer will also review the child’s assets and income during underwriting, making it easier for the parents to qualify, without requiring that the child live in the home
Family Opportunity Mortgage program requirements 2026
According to Fannie Mae, borrowers must demonstrate that the parent “is unable to work or does not have sufficient income to qualify for a mortgage on his or her own.”
Because the property is designated as an owner-occupied home, the down payment can be as little as 5 percent of the purchase price.
Check your home buying options. Start hereTo access this type of mortgage, you’ll need to meet the conventional loan eligibility requirements established by Fannie Mae and Freddie Mac, including:
- 620 minimum credit score
- 45% maximum debt-to-income ratio (DTI)
- Steady employment and the demonstrated ability to afford the costs of a new mortgage in addition to your current housing costs
- Documentation that the family member cannot afford the home on their own, typically pay stubs or Social Security award letter
These documents demonstrate for the loan that your loved one cannot qualify for the loan amount on their own, and that the borrower can afford the commitment of a new mortgage.
Family Opportunity Mortgage benefits
The Family Opportunity Mortgage offers significant benefits for borrowers looking to purchase a home for a family member:
- Primary residence terms: Qualify for the same rates and benefits as an owner-occupied loan.
- Lower down payment: Often as low as 3% for eligible borrowers.
- Reduced closing costs: Save compared with second-home or investment loans.
- Competitive interest rates: Typically lower than investment property rates.
- Flexible loan terms: Makes it easier to purchase a home for a family member.
- Supports independent living: Helps elderly parents or disabled adult children live independently.
- Cost-effective housing option: Monthly mortgage may be less than assisted living or nursing home costs.
Fannie Mae Family Opportunity Mortgage FAQ
Time to make a move? Let us find the right mortgage for youThe Fannie Mae Family Opportunity Mortgage is a special home loan program designed to help families purchase a home for an elderly parent, disabled adult child, or other qualifying family members. It allows the borrower to use the property as a rental for their family member while qualifying for the same favorable terms as a primary residence loan.
Yes, the Family Opportunity Mortgage program gives borrowers a loan option to purchase a home for their parents as a primary residence.
The program doesn’t have separate income limits, but borrowers must meet Fannie Mae’s standard income and credit requirements. The property must also meet eligibility guidelines, including being suitable for the family member living in it.
While the Family Opportunity Mortgage is most commonly used to buy a home for aging parents, it can also be used to purchase a home for a disabled adult child with sufficient documentation that the child is not able to afford the home on their own.
This program is offered through participating lenders approved by Fannie Mae. Check with your bank, credit union, or mortgage broker to see if they offer this loan.
