I recently started supporting my mother, including paying her rent. In my opinion the amount of rent she has been paying is not worth it for her tiny, poorly maintained house (getting the landlord to do anything is always a fight). So I am considering purchasing a house for her to live in. I have the DTI ratio to be able to afford another mortgage at the price range in the area she wants to live (house prices there are 60-100k in a rather rural area). This would be a primary residence for her but not for me (she is in Oregon, I am in Colorado).
My questions are:
If I buy a house in only my name will it have to be financed as a second home; therefore requiring a conventional loan and at least a 10% down payment?
If I add my mother to the mortgage would it be considered a primary residence; therefore being eligible for either FHA or conventional loan with the 3.5-5% down payment?
