Episode 65, Segment 2: Financing Options for a Multi-Generational Home
In this segment, John Schutze and Andrew Thurston flip the coin on multi-generational homes to discuss the mortgage options available for this unique type of housing.
Loan Options for Multi-Generational Homes
"The lower-priced models could possibly qualify for an FHA loan," Andrew says.
Austin is simply not affordable for a lot of people anymore," John adds. "So we're seeing this with a lot of clients nowadays where they're combining households to save money or just to be able to buy a house. This is a great alternative."
"Parents can get the loan in their name and have their kids live there; the kids could get the loan in their name and have the parents live there; or they could all four be on the loan together and the down payment could be from any source, either the parents or the kids. So this is a very acceptable way to finance it without any issue," John explains.
"If the home is in the $350-400k range, and the parents and kids are both wanting to move, there aren't really a lot of homes under the $300k range. In this case, they could get a $400k house and it would be cheaper than getting two separate homes," he continues.
"If you have a current home and sell it to move to a multi-generational home, you could use that money to put 20% down on your new home and avoid mortgage insurance and do it that way," Andrew says.
"If a parent who is over 65 is helping to buy the multi-generational home, they could most likely get the senior exemption on the whole home and offer a huge savings," Monica adds.
"And if you have a parent on the title, you can get the exemption through that - they don't have to be on the mortgage to be on the title," John says.