How to Buy a House for Your Child (Even If You Aren’t Loaded) MABA Massachusetts FirstTimeHomeBuyers RealEstate

Being able to help your grown kids become homeowners can really give them a leg up—particularly in this pricey housing market.

“Between rising home prices and millennial student loan debt, many young adults don’t have money to buy a house,” says Todd Sheinin, mortgage lender and chief operating officer at New America Financial in Gaithersburg, MD. “That’s where parents can help out.”

Indeed, 41% of college-educated Americans with student loans report having postponed buying a home because of their debt, according to a recent survey by Student Loan Hero, a service that helps people pay off their student debt more efficiently. According to a recent home buyer survey from ValueInsured, 17% of millennial home buyers say they plan to rely on a loan or a gift from a family member to fund the majority of their down payment. That relative is usually a parent.

But make no mistake, buying a house for your adult child isn’t as straightforward as, say, buying them a puppy when they were 8. Purchasing a house for your kid requires careful planning. Here’s what you need to know, and your options on how to get this done.

Option 1: Gift the down payment money

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FIRST TIME HOMEBUYERS