Mortgage

Parents hold key to first-time homebuyer success

"Without them, the recovery’s not sustainable"

Due to the growing student debt problem, first-time borrowers are finding it more difficult to afford owning a home. However, according to an article in Bloomberg, while it might be difficult to secure a loan though the bank, a second, closer option is starting to step in and help finance their first home: mom and dad. 

Last year, 27% of those purchasing a home for the first time received a cash gift from relatives or friends to come up with a down payment, according to data from the National Association of Realtors. That’s up from 24% in 2012 and matches the highest share since the group began keeping records in 2009.

“Without them, the recovery’s not sustainable,” said Anika Khan, a senior economist at Wells Fargo Securities in Charlotte, North Carolina. Anything that gets more money into first-time buyers’ hands “just moves the housing recovery along,” she said.

Most Popular Articles

Latest Articles

G-Rate sued for gender discrimination, sexual harassment, unpaid comp 

A former Guaranteed Rate LO is suing the lender and two managers for allegedly discriminating against her on the basis of gender, failing to compensate her equal to male co-workers, and subjecting her to sexual harassment.

3d rendering of a row of luxury townhouses along a street

Log In

Forgot Password?

Don't have an account? Please