I'm glad you know more than the FNMA Underwriting Guidelines directly regarding Elderly parents.
Actually, what you don't know is a lot.
Primary Residence and O/O mean the same thing in the loan business.
So yes, "If the parent is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the child is considered the owner/occupant". - Per FNMA Guideline,B2-1-01: Occupancy Types (11/03/2015), Published July 25, 2017.
The LO in this case was a smart cookie and was able to help the realtor and the son get the parent into a home with affordable O/O type financing for the son.
This may have been explained properly to the borrower's wife by the LO. It sounded like she spoke English but the husband didn't. Often times customers 'forget' details that seem small to them but are crucial for the loan approval.
This is WAY different from someone claiming a rental property as an O/O property.
Kudos to the LO and job well-done! |
