Can someone ever own TWO primary residences?

Can someone ever own 2 primary residences?

Scenario:
Your elderly client is needing to buy a new home, however, she has very little income and her credit score is simply too low, and beyond repair, that he can’t get approved. While her son is willing to co-sign with her, your client’s poor credit, unfortunately, instantly kills any possibility of a loan approval with the two of them together.

Her son already owns his own primary residence. And though her son wants to help, he does not have the ability to buy the home as an investment property for his mother to live in. Is there a way the home can still be purchased as a primary residence for your client?

ANSWER:
Yes. Fannie Mae will consider the property to be owner-occupied for a child who is purchasing a home for their parent. Lenders do need to document that the parent is unable to work or does not have sufficient income to qualify for a mortgage on his or her own. Often a social security awards letter is all you will need to meet requirements.

A principal residence is a property that the borrower occupies as his or her primary residence. However, the following options describe conditions under which Fannie Mae considers a residence to be a principal residence even though the borrower will not be occupying the property:

Multiple borrowers
Only one borrower needs to occupy and take title to the property, except as otherwise required for mortgages that have guarantors or co-signers (see B2-2-04, Guarantors, Co-Signers, or Non-Occupant Borrowers on the Subject Transaction).

Parents or legal guardians want to provide housing for their handicapped or disabled adult child.
If the child is unable to work or does not have sufficient income to qualify for a mortgage on his or her own, the parent or legal guardian is considered the owner/occupant.

Children wanting to provide housing for parents
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. In this way, the child could own their own primary residence while also purchasing a “second” primary residence for their parent(s) to live in. This does not require the parent(s) to be on the loan, and allows them to get the better loan terms that a primary residence loan affords.

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