The Family Assist Program Explained
What Is the Family Assist Program?
The Family Assist Program, also known as the Family Opportunity Mortgage Program, was established to make it easier for family members to acquire homes for their loved ones. This program addresses the challenges faced by families aiming to help their elderly or disabled family members find safe and convenient housing.
In the state of Michigan, the Family Assist Program allows a family member to leverage their income and credit history to purchase a home with a qualifying family member. This option not only streamlines the path to homeownership for elderly or disabled relatives, but also paves the way for younger family members to continue building equity in real estate purchase.
What Scenarios Does This Program Work For?
Here are two basic scenarios to show how the Family Assist Program can be used:
- A family member purchases a home for an elderly or disabled parent.
- A parent purchases a home for an adult child.
These are just a couple of instances showcasing how the Family Assist Program can step in to offer a helping hand to family members. Regardless of the scenario, the person living in the home must classify it their primary residence for at least one year and should be unable to finance the home without support.
Similar Options to the Family Assist Program
While the Family Assist Program specializes in homes for elderly or disabled family members, there are alternative programs that accommodate a broader range of people and situations!
Through a standard Conventional Loan, anyone can team up with another family member or individual to jointly purchase a home. There are no particular restrictions on who you can partner with. To make this happen, both borrowers need to meet the loan criteria, and every person named on the mortgage carries the weight of complete responsibility and financial commitment for the home. This isn’t a situation divided 50/50 between two parties — instead, both sides bear equal responsibility for the entire home.
In this situation, the minimum down payment is 5% (which is lower than the investment home requirement). However, only one of the borrowers needs to use the home as their primary living space. Plus, there are no location restrictions to worry about.
Who Can Use the Family Assist Program?
The purpose of the Family Assist Program is to help families who want to pitch in and help their loved ones own a home.
To be part of the program, the family member who’s offering the support needs to have a healthy credit history and meet the income requirements. There are additional requirements for the family member receiving the support.
Guidelines include:
- Minimum of 620 credit score
- 5% down payment
- Debt-to-income ratio less than 45%, can go up to 50% with certain compensating factors
Additionally, the residing family member must:
- Not be able to qualify for the loan on their own
- Live in the purchased home for at least one year
Remember, the requirements can vary depending on your situation! It’s a good idea to reach out to a licensed Loan Officer to find out what you’re eligible for.
What Advantages Does the Family Assist Program Offer?
The Family Assist Program brings multiple perks to both the family member giving the financial support and the relative residing in the home.
- Get the perks of a primary residence with an investment home: The hoops you jump through for loan requirements are more like those for your main residence, not for a vacation spot or investment property. This means you get a way lower down payment and interest rate compared to second homes.
- Stable and Secure Living: Say goodbye to landlord hassles or hunting for assisted living spaces. For many families, this program’s main advantage is being able to provide a stable and secure living setup for loved ones.
- Lenient Occupancy Rules: While the person benefiting from the housing setup has to live in the place for at least a year, the helper doesn’t need to stay there.
- Equity Building Opportunity: You get a shot at building up equity in a home, which can turn into a big investment over time.
All in all, the Family Assist Program isn’t just about loans — it’s about families supporting each other.
What’s the Process for Applying to the Family Assist Program?
To begin, reach out to our mortgage experts. We’ll navigate you through the application process, eligibility criteria, and additional choices.
Your first task is to fill out a mortgage application. We’ll gather information about your income, assets, and credit history. If you’re the family member providing financial support, you’ll need to supply extra documents like tax returns or bank statements.
Keep in mind that, as with any loan program, underwriting approval is essential, and loan terms can vary.
Connect with our professionals to determine your potential borrowing capacity, getting you closer to getting a new home for your family member.
Frequently Asked Questions
Can I help my elderly parents purchase a house?
Absolutely, through the Family Assist Program provided by Treadstone, families in Michigan can assist their elderly or disabled parents in buying a home. This program helps your parents avoid dealing with landlords or assisted living arrangements.
Is it possible for family to contribute to a mortgage?
Yes, there are multiple ways for family members to support one another, including helping with housing costs or even covering a loan for a relative who might not be able to manage a home loan independently.
Who provides the Family Assist Program?
Treadstone Funding, located in West Michigan, offers the Family Assist Program as one of their loan options. It’s just one of the many pathways open to home buyers in Michigan.
Can parents assist with my mortgage?
Yes, there are circumstances where parents can lend a hand with a mortgage. This could involve combining finances for a loan approval or contributing gift funds to handle closing expenses or down payments. A variety of options exist!
Subject to credit approval, not all borrowers may qualify. Rates and terms are for illustrative purposes only; your actual rates and terms may be different. Please contact Neighborhood Loans for current rates and programs. Neighborhood Loans is an FHA approved lender, not endorsed by or affiliated with any government institution. Not to be considered tax or financial advice. Please consult a tax or investment professional.
T he Family Assist Program isn't just about loans — it's about families supporting
each other.
