The FHA Kiddie Condo Program

There are very few loan programs that are not real loan programs – but are so popular that they spawn their own nickname.

In fact, there is only one that I can think of – the FHA Kiddie Condo program. The FHA Kiddie Condo loan doesn’t have anything to do with kiddies. It also doesn’t have anything to do with Tempe condos with community pools per se – and to make it even more confusing, the FHA kiddie condo loan program is really just a regular-old-FHA-loan usually with a 30 year fixed rate.

So why is is referred to as the FHA Kiddie Condo program? Because is has become a popular option for parents with college-aged children who are going to college.

FHA Kiddie Condo Loan Details

The FHA Kiddie Condo loan allows non-occupant co-borrowers — which means that  parents can purchase a condo using their credit and their income but are not required to live in the property. Only the co-borrower is required to live in the property.

The property is not considered to be a second home or an investment property. Because it is not considered a second home or investment property, the FHA interest rates are generally the same as the regular Arizona FHA loan programs.

The kiddie condo program also allows the occupant to charge rent to roommates!

With these highlights to the FHA loan program, it is no wonder that many parents are taking advantage of the program – college is expensive enough to pay for!

If you are considering purchasing a condo or townhome in the Phoenix or Tempe area please feel free to contact Candace to help you find the perfect home for your student.

Search all Tempe, Az condos under $100,000
Search all Tempe, Az condos with community pools

Arizona Mortgage Rates for March 12, 2009