An adult child may be able to buy a home for an aging parent as a principal-residence transaction, even without living there. Here is how Fannie Mae and Freddie Mac handle the exception, what needs to be documented, and why the borrower still has to qualify carrying both housing payments.

Starting December 1, Fannie Mae will require six months of reserves on a departing residence when your borrower has less than 12 months of property management experience. Leases are out and market rent is in, but the reserves are the change that will decide whether these files close.