Why not start with this bank owned 1488 s.f. condo in Victorian Village w/ 2 car garage, 3 beds, 2 baths for only $210,000? Yes, it needs some updating.

I had someone ask me this question yesterday…..“Hey Joe, Can I qualify for an FHA loan if my parents co-sign since I have no income? Do I personally NEED to have income?”

The short answer is yes they can, even if the child has no income or assets to speak of.  And, the adult child should be able to receive the $8,000 tax credit for first time home owners.*

I turned to Brian Connor with Huntington Bank for the definitive answer and other issues to consider. Here is what he had to say….

“The answer is “Yes”… a child can purchase a home without any income or assets, as long as an immediate family member can qualify for the new payment… along with the son or daughter’s debts, and their own respective mortgages and debts. The transaction is referred to as a “Non-Occupant Co-Borrower” – the Non-Occupant(s) being the parent or parents, and is treated as “Owner Occupied” – with the son or daughter being the Occupant; this is a better option than a parent having to purchase the home as investment property and put 20% down and be subject to higher rates.

This situation was often referred to as a “Kiddie Condo”, where a parent bought a condo or a less expensive home for a child in college who had no current income or assets to qualify on their own. They, the parent or child, could benefit from tax write-offs and appreciation of the home rather than pay $ for campus housing or rent.“

Thanks Brian, this is great information for anyone looking to help out their kids as they look for their first place or an Ohio  State University area home for sale, or Ohio Wesleyan, or Ohio Dominican, or Capitol University, or…..

*Of course, seek the advice of a certified tax professional for verification.