KIDDIECONDOLOANS.COM LENDER HOTLINE: 888-581-5008 College students can apply for mortgages if they are employed and have a co-signer, many of the lender standards are stricter now, but it’s still a possibility for college students to own their own place. That fellow college student in your class living in the condo a few blocks from campus may actually be a homeowner. With just a little help from mom or dad, you could be a homeowner too. When a parent is willing to help their child become a homeowner their not just teaching them how to buy a house, but they’re teaching them how to own a home. It’s a great opportunity to teach your kids financial stability too. If you’re in a college town, employed and are financially responsible it’s possible a kiddie condo loan is for you, however there may be some setbacks. These particular mortgages require a cosigner and many lenders are urging their clients against co-signing loans. It’s a really good program for young adults, teaches them to invest in their properties and helps them to learn financial responsibility. More Strict Guidelines Ever since the housing meltdown, the federal guidelines for all mortgage programs are a lot stricter. This includes the kiddie condo loan program. Up until 2008 you could apply for a loan with no income and no credit history, as long as you had a family member co-sign for you. The lender would then just use the parent’s credit score to qualify for the loan. In today’s market the lowest credit score among the borrowers is used to qualify for the loan. Many students who use the kiddie condo loan program often times will have a renter to offset costs, however when you’re applying for the loan initially, rent payments are not and cannot be factored in for loan approval. Even after approval young adults need to be responsible about who they let rent. Typically, it will be friends who you consider your roommates, but it’s important to know you’re the landlord and they’re the tenant. So it’s always a good idea to write up some form of a lease, especially if problems arise. The document should be written upfront and clearly indicate rent and any other expenses your tenants will be responsible for. HUD has guidelines for borrowers, like students, who have limited credit histories. Such as the borrowers can’t have bad credit, the borrower planning to live in the home must have absolutely no delinquent history. This includes delinquencies on rent, and no more than one 30-day delinquency to other creditors, such as a credit card payment or car payment, excluding medical payments. Parents Proceed With Caution Its important parents understand that as a co-signer they are just as much responsible for repaying the debt in the event the main borrower defaults on the loan. It’s their credit score and history at stake when they co-sign for a family member and any potential penalties or late fees will fall into their lap.

1. Co-Signing A
Kiddie Condo Loan
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2. College students can apply for mortgages if they are
employed and have a co-signer, many of the lender
standards are stricter now, but it’s still a possibility for
college students to own their own place. That fellow
college student in your class living in the condo a few
blocks from campus may actually be a homeowner.
With just a little help from mom or dad, you could be a
homeowner too. When a parent is willing to help their
child become a homeowner their not just teaching
them how to buy a house, but they’re teaching them
how to own a home. It’s a great opportunity to teach
your kids financial stability too.
KIDDIECONDOLOANS.COM
LENDER HOTLINE: 888-581-5008

3. If you’re in a college town, employed and are
financially responsible it’s possible a kiddie condo
loan is for you, however there may be some setbacks.
These particular mortgages require a cosigner and
many lenders are urging their clients against co-
signing loans. It’s a really good program for young
adults, teaches them to invest in their properties and
helps them to learn financial responsibility
KIDDIECONDOLOANS.COM
LENDER HOTLINE: 888-581-5008

4. More Strict Guidelines
Ever since the housing meltdown, the federal
guidelines for all mortgage programs are a lot stricter.
This includes the kiddie condo loan program. Up until
2008 you could apply for a loan with no income and no
credit history, as long as you had a family member co-
sign for you. The lender would then just use the
parent’s credit score to qualify for the loan. In today’s
market the lowest credit score among the borrowers is
used to qualify for the loan.
KIDDIECONDOLOANS.COM
LENDER HOTLINE: 888-581-5008

5. Many students who use the kiddie condo loan program
often times will have a renter to offset costs, however
when you’re applying for the loan initially, rent
payments are not and cannot be factored in for loan
approval. Even after approval young adults need to be
responsible about who they let rent. Typically, it will be
friends who you consider your roommates, but it’s
important to know you’re the landlord and they’re the
tenant. So it’s always a good idea to write up some form
of a lease, especially if problems arise. The document
should be written upfront and clearly indicate rent and
any other expenses your tenants will be responsible for.
KIDDIECONDOLOANS.COM
LENDER HOTLINE: 888-581-5008

6. HUD has guidelines for borrowers, like students, who
have limited credit histories. Such as the borrowers
can’t have bad credit, the borrower planning to live in
the home must have absolutely no delinquent history.
This includes delinquencies on rent, and no more than
one 30-day delinquency to other creditors, such as a
credit card payment or car payment, excluding medical
payments.
KIDDIECONDOLOANS.COM
LENDER HOTLINE: 888-581-5008

7. Parents Proceed With Caution
Its important parents understand that as a co-signer they are
just as much responsible for repaying the debt in the event the
main borrower defaults on the loan. It’s their credit score and
history at stake when they co-sign for a family member and
any potential penalties or late fees will fall into their lap. If the
main borrower defaults it’s the co-signers credit that is going
to be damaged. If they do decide to co-sign, the co-signer has
to show proof of enough income to pay their own debts
including the student’s new mortgage payment. It will take a
well financially stable parent to qualify. Also, being listed as a
co-signer on a family member’s mortgage could make it
difficult for the co-signer to buy other property or qualify for
other loans.
KIDDIECONDOLOANS.COM
LENDER HOTLINE: 888-581-5008

8. These loans however, aren’t limited to only parents or
grandparents helping their children. According to HUD co-
signing borrowers can include siblings, stepchildren, nieces,
nephews, cousins and even unrelated people who can show
proof of a longstanding family-type relationship. These loans
also aren’t limited to only condos despite the name “Kiddie
Condo Loans”. Always proceed with caution before co-
signing for a family member. They are going to be new at
home ownership, and that comes with a lot of responsibility
including being able to afford issues that arise after they have
moved in. Broken A/C, broken refrigerator, roof leaks, etc. Be
sure that you have confidence that who you’re co-signing for
is mature enough to be able to handle these unforeseen
circumstances.
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LENDER HOTLINE: 888-581-5008

9. T O L E A R N M O R E
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C L IC K HE R E
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10. Justin McHood is Americas Mortgage
Commentator and has been providing
Mortgage commentary for over 10 years.
INFORMATION PROVIDED BY:
JUSTIN MCHOOD
MORTGAGE COMMENTATOR
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11. LEARN MORE ABOUT MORTGAGE COMMENTATOR:
MORTGAGECOMMENTATOR.COM
FACEBOOK.COM/MORTGAGECOMMENTATOR
@MORTGAGECOM_
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