Has anyone heard of a non-occupying co-borrower? This is a twist on the parents/kids buy house. Here the kid has better numbers for a lower interest loan. Parents are going to make the down payment and pay the kid the mortgage amount monthly. Parents are over 65 so they are trying to get the lower real estate tax exemption.

Is there a downside to this? It is usually the flaky kids who have trouble getting the loan!

Thanks in advance.