Skip links


Learn how to get your child through college

In my experience, not only is the cost of college tuition jaw-dropping these days, but the additional expense of living on campus also proves to be eye-popping! We were not in a position to foot the bill for the $1K+/month needed for my college freshman to live in a dorm, so we opted to ‘put our money where our mouth was’ and work together to help purchase his first home (with just 3% down payment, which ended up saving us lots of $$ over the years)! If this sounds like something you may want to do, then consider investing in an FHA Kiddie Condo Loan…and NO it does not mean you have to purchase a condo (vs. house or townhouse).

This type of mortgage allows a person to co-borrow with a blood relative (for example, parent, grandparent, sibling, etc.) who helps qualify for the loan using their income or assets. Both borrowers take title to the property and sign for the loan.

There are 3 big advantages to using this type of loan:

  1. A low down payment (as little as 3% of the purchase price).
  2. A lower, owner-occupied interest rate on the mortgage, vs the higher investment property interest rate.
  3. Helps the new borrower establish a solid credit rating.

With a Kiddie Condo loan program, at least one borrower must occupy the property as his/her primary residence, but extra bedrooms could be rented out to help cover the cost of the mortgage payments. This is a perfect way for a college student, recent graduate, or anyone unable to obtain a loan on his/her own to buy a condo, townhome, or single family home with the help of a family member.

As with anything, be sure to do your due diligence and consult with a qualified lender and tax consultant to gather all the facts, and make sure you and the student understand the motive and expectations of each party before moving forward. I would have had no idea this option was available, until a friend mentioned it to me. I feel it is definitely worth sharing, especially as the cost of college tuition continues to rise with the cost of living on and off campus. I love to offer options that help families live their dream, without breaking the bank!