Buying a primary residence for a disabled child or elderly parent may qualify for better mortgage terms than you think. At North Star Mortgage Network, we work with Florida families who want to provide safe, long-term housing for loved ones—and we know how to structure the loan correctly using Fannie Mae and Freddie Mac guidelines.

If your child or parent can’t qualify due to limited income or disability, we may still be able to treat the loan as owner-occupied, helping you secure better rates and lower down payment options.

How to Qualify for a Primary Residence for Disabled Child or Elderly Parent

Both Fannie Mae (DU) and Freddie Mac (LPA) offer flexibility when you’re buying a primary residence for a disabled child or elderly parent.

Fannie Mae (DU) allows:

  • A parent or guardian to purchase a home for a disabled adult child and still be considered the owner-occupant, as long as the child cannot qualify on their own.
  • A child to purchase for an elderly parent, using the same rule if the parent is unable to qualify due to age or income limitations.

Freddie Mac (LPA) allows:

  • A borrower to be treated as an owner-occupant if the home is intended for their parent(s)
  • Or if the occupant is disabled, and the borrower is their parent or guardian

This makes it possible to use primary residence loan terms—even if the borrower won’t be living in the home.

Benefits of Buying a Primary Residence for Disabled Child or Elderly Parent

When you qualify under these occupancy exceptions, you get:

  • Lower down payments (as little as 3% for conventional loans)
  • Owner-occupied interest rates, which are lower than investment or second home rates
  • Simpler underwriting compared to investor loans
  • Legal, fully-compliant structuring to avoid occupancy misrepresentation

What Documentation Is Required?

To qualify for a primary residence for a disabled child or elderly parent, your lender may request:

  • A letter of explanation detailing the relationship and living arrangement
  • Documentation showing disability status or lack of qualifying income
  • Guardianship or power of attorney paperwork (if applicable)
  • An occupancy affidavit stating that the relative will live in the home full-time

We assist with all documentation to help prevent underwriting delays.

Real-Life Example

A North Florida couple recently used this strategy to buy a home for their elderly mother, who lives on Social Security. Because she couldn’t qualify herself, they were able to structure the loan as a primary residence. That meant a lower interest rate, just 5% down, and no investment property pricing hits.

North Star Mortgage: Helping Families Get It Done Right

We’ve been guiding Florida borrowers through complex loan scenarios for over 25 years. Whether you’re looking to provide housing for a child with special needs or a parent entering retirement, buying a primary residence for a disabled child or elderly parent can be done smoothly—with the right broker in your corner.

Your best interest is my principal concern.

Posted in Uncategorized