(Contributed by DeWitt Ingram, who comments, “This can easily be spun into private note lending through your church, neighborhood association, alumni organizations, etc. – even if the new borrowers are not your kids!”)
Parents are increasingly helping their adult children buy their first home. In fact, a new study suggests that if families were considered a financial institution, the “Bank of Mom and Dad” would be the seventh largest mortgage lender in the country.
Parents and grandparents supported the nationwide purchase of $317 billion worth of property –1.2 million homes – last year, according to a newly released study from the Legal & General Group, a multinational financial services institution.
One in five of buyers received gifts or interest-free loans from family members, the study shows. The average amount buyers received from them was $39,000. The Pacific region saw the greatest share of young adults receiving financial help in buying; the Rocky Mountain region saw the lowest.
More than half – 51 percent – of prospective home buyers under the age of 35 say they expect to have help from their family or friends when buying a home.
READ MORE: https://www.floridarealtors.org/NewsAndEvents/article.cfm?p=5&id=377580