It’s a tough housing market for everyone, but it’s especially true for younger first-time buyers in the D.C. region.
Some have been getting the keys to their first home with a little 鈥� or a lot 鈥� of help from Mom and Dad.
“The challenge that young buyers are facing right now is affordability. You know, they’re getting hit from multiple directions,鈥� said Eldad Moraru, a D.C.-area real estate agent with Compass Real Estate.
In many cases, he said, parents are choosing to assist with down payments and other homebuying costs by offering their children a portion of their inheritance now.
Lender requirements differ, but a letter stating the money is a gift and not a loan is often all it takes to use the funds in the mortgage process, and it can make a big difference once the monthly payments begin.
鈥淚f you’re only putting 5% down, then you definitely have to have mortgage insurance, or 10% down, but if you get to 20% down, now you don’t have mortgage insurance, which changes the monthly payments,鈥� Moraru said.
Parents who are not able to provide large sums of money can help out in other ways.
One strategy involves charging rent to new college graduates who are working or hunting for their first job while living at home. That money could be collected, saved and later given to the children when they find a place they want to buy.
鈥淓ssentially you’ve taught them to build a nest egg, but also to start getting used to the idea of taking some of their paycheck and putting it toward a housing payment, which you know, for kids that are right out of college is a new concept,鈥� Moraru said.
Giving adult children a financial hand up does not mean pushing them into more home than they can afford, he said.
鈥淵ou don’t want to wish upon your kids that they’re going to be house poor, so I don’t see that often,鈥� he said.
But there is one area where parents need to be careful not to overstep.
“I think sometimes parents project their own lifestyles on the kids, and I think you’ve got to really scale that back, because something that you feel you know has worked for you might not necessarily be what’s right for the kids,鈥� he said.
Get breaking news and daily headlines delivered to your email inbox by signing up here.
漏 2026 91欧美激情. All Rights Reserved. This website is not intended for users located within the European Economic Area.
