I Get This Question All The Time: What’s a Kiddie Condo?

People always ask me to explain what a “kiddie condo” is, and I’m going to do just that for all of you today.

Kiddie condos don’t actually have to be condos at all. They’re simply properties bought by parents for their adult children, and there are two ways this arrangement can be set up.

First, the child can be included on the loan. This allows for a lower interest rate and down payment. This is normally the superior option, but the child does need a qualifying credit score to qualify.

The other option is to treat the home as an investment property. For this option, the parent is essentially “renting” their home out to their children, even if they don’t actually ask them for payment. This option does require a higher down payment (a minimum of 20%) and may come with a higher interest rate, but can be an attractive choice if the first option isn’t feasible.

This arrangement can also be used to help an aging parent find suitable housing. It wouldn’t necessarily be called a kiddie condo in this case, but the concept is essentially the same.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

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