If you have an aging parent or another dependent family member who needs a safe, stable home but doesn’t have the income or credit to qualify for a mortgage, you may feel like your only option is to purchase a property as an investment. Unfortunately, investment property loans often come with higher interest rates, larger down payment requirements, and more restrictive underwriting guidelines.

But what if there were a better way?

Many buyers are unaware that you can purchase a home for a family member and still qualify for primary residence financing terms, even if you don’t plan to live in the home yourself. This approach makes homeownership more affordable and accessible for aging or dependent loved ones—and it could save you thousands over the life of the loan.

Let’s walk through how it works, what you need to qualify, and why working with The Loan Nerd can make all the difference.

What Is It?

This strategy allows a borrower to purchase a home for an aging parent or another dependent family member as a primary residence, even if the borrower already owns their own home and won’t live in the new property.

That means you avoid the higher interest rates and more stringent requirements of an investment loan, while giving your loved one a home of their own. It’s a powerful option for families who want to care for aging parents with dignity and financial intelligence.

Who Is This For?

This type of financing is ideal if:

  • You have a parent or dependent who cannot work or who has limited income.
  • Your loved one needs housing in another location (closer to healthcare, family, or more suitable living conditions).
  • You have the financial ability to qualify for an additional mortgage.
  • You want to avoid the costs and restrictions of investment property financing

Borrowers using this strategy can buy a home for their loved one and finance it with the same terms they’d get for their own primary residence.

What Are the Benefits?

1. Lower Interest Rates

Primary residence mortgages offer the lowest available rates—saving you significantly over the life of the loan.

2. Smaller Down Payment

In many cases, you may only need 5% down, compared to 15%–25% for investment properties.

3. Easier Approval Criteria

The underwriting standards are often more flexible for primary residences than for second homes or investments.

4. Your Loved One Has Stability

Instead of renting or living in a care facility, they have the comfort, security, and pride of a home in their name.

5. You Maintain Ownership

The home is titled and financed in your name, giving you control over the asset while providing housing for someone you care about.

How Do You Qualify?

Here are the basic steps and requirements:

  • The occupant must be an immediate family member (typically a parent or dependent).
  • They must not be able to qualify for the mortgage on their own due to income or credit.
  • You must qualify for the mortgage based on your income, credit, and overall financial profile.
  • The property must be a single-unit home (no multi-family properties).
  • The occupant must intend to live there as their primary residence

This isn’t a loophole—it’s a well-established option that allows families to take care of each other while benefiting from the best available financing terms.

What Documents Are Needed?

  • Proof of your relationship to the intended occupant (birth certificate, etc.)
  • A letter of explanation describing the purpose of the purchase
  • Standard mortgage documentation (income, assets, credit)
  • The intended occupant may need to sign an occupancy affidavit

Working with an experienced lender like The Loan Nerd ensures these details are handled smoothly and in full compliance with lender and agency guidelines.

Real-World Example

Let’s say your mother is retired, living on Social Security, and her lease is ending. She doesn’t qualify for a mortgage on her own. You, on the other hand, own your home, have stable income, and want to help her live closer to you.

Instead of buying a second home and being stuck with an investment loan at 7.5% interest and 20% down, you work with The Loan Nerd. We help you structure the loan as a primary residence purchase for your mother, getting you a lower 6.25% rate and only 5% down—saving tens of thousands over the next 30 years.

Now your mother has a home she loves, you’ve made a smart investment, and everyone wins.

Why Work with The Loan Nerd?

At The Loan Nerd, we specialize in smart, family-first financing solutions. Our team knows how to navigate the guidelines, position your application, and advocate for the best possible terms.

We:

  • Understand the unique requirements for this type of purchase
  • Provide clear, step-by-step guidance
  • Communicate with the lender to ensure full compliance
  • Advocate for you and your family every step of the way

You don’t need to go it alone—we’ll help you do it the smart way.

Ready to Explore This Option?

If you’re thinking about buying a home for a parent or family member, let’s talk. There’s no obligation—and the potential savings and impact on your loved one’s life are worth it.

Call us today at (832) 852-5626

Let’s make a smart move for your family—together.

The Loan Nerd – Smarter Mortgages. Lifelong Support.