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Take advantage of the Family Opportunity Loan

Posted by Justin Rollo February 13, 2014 11:57 AM

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Do you have a college bound child? Why pay room or board or high city rents?

Boston is known for a lot of things and Higher Education ranks up at the top. With 58 total institutions of higher education inside 128 / 95 loop (excluding colleges and universities along the North Shore, South Shore and in suburbs to the west) metropolitan Boston enrolls about 250,000 students.

With so many students enrolled in the Boston area and rents on the rise many parents are taking advantage of a loan program that allows them to buy a one unit home for their college bound son or daughter.


With the Family Opportunity loan program, the parent purchases the property as a 2nd home but it will be the child's primary residence. This is an advantage over buying the home as an investment property because it allows for a lower down payment, easier condo guidelines if buying a condo and lower rate compared to an investment property purchase.

Here’s a quick comparison: 

Family Opportunity
Maximum Loan to Value: 90%
Minimum Credit Score: 620 up to 90%
Condominium Owner Occupancy Requirements: No Requirement

Investment Property
Maximum Loan to Value: 85%
Minimum Credit Score: 680 up to 85%
Condominium Owner Occupancy Requirements: 51% Owner Occupied

Here are some of the Family Opportunity Loan Program Guidelines to be aware of:

  • Child must be enrolled in college (documentation validating current enrollment is required).
  • Subject property must be within a reasonable proximity to the university that the child is attending.
  • Property must be a reasonable distance from the parent?s home in order to be classified as a true second home. The subject property can provide the parents a place to stay while visiting the campus, but it will be the child?s primary residence.
  • Property cannot be rented and it must be occupied by the child for a minimum of one year.
  • Borrowers may not own additional second/vacation homes in the same locale.
  • A letter from the borrower describing the purpose is required.
  • Parents will apply and qualify for the loan. The child is not an applicant and does not factor into the qualifying for the mortgage.
  • Parents own the property. If the child is of legal age, the child may join the parents on the title, but it is not required.

The Massachusetts housing market experienced one of its best years in 2013 as sales rose to pre-recession levels and home values increased rapidly. With interest rates still near their all-time lows, avoid paying room and board or city rents for your college bound child. Contact me today for a free consultation to see if you qualify for the Family Opportunity Loan Program!

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This blog is not written or edited by or the Boston Globe.
The author is solely responsible for the content.

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About this blog

Justin Rollo of RE/Max Realty Plus in South Boston provides an analytical and irreverent look at the Boston real estate market. More »
About the Authors
Justin Rollo
Real Estate Sales
Craig Barber
Lieberman Law Office
Real Estate Law

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