Parent’s guide to helping your kids purchase a home in 2018

Come on mom, give me a hand!
Helping your young adult buy a home
According to some Buzzfeed studies Millennials have a tougher time then prior generations when its comes to buying a home.  From College Debt, Unemployment and rising home prices the younger generations have a tougher time buying their first home in 2018.  If you or a loved one is in the position to help a relative purchase a home this will serve as a guide to the best way’s to do so. If your ready for a free consultation on the best option for your first home just click here.

Improving the credit score
 The better your credit score the better the Mortgage rate, you may even qualify for lower PMI or higher Loan amounts with a better credit score.  It is not the easiest thing in the world to achieve a excellent credit score but having the right items on your credit can help.  The first thing to take into consideration is helping them pay down Credit Cards.  Having a balance of 30% or less while applying for a mortgage normally gives you a boost in your Fico Score.  Another alternative is completely paying off an account for them, this can especially help to increase their pre-approval amount.  This doesn’t mean you have to pay off 50K in student loan debt too, It could be a account with a high payment but only a few grand left on the account. For example a Car loan with 4 payment’s left, totaling to $1000 dollars.  Getting that $250 payment off of their credit report will greatly improve their Debt to income ratio and may even boost the score!

Refinance Plattsburgh Mortgage

Helping to reduce their cash to close
Although we specialize in low and no down-payment loans their is still some closing cost’s associated with each loan.  Even though in some cases you purchase a home with no out of pocket closing costs some loans and area’s may require some out of pocket costs.  The use of Gift funds from a parent is one of the best ways to help your kids purchase a home.  I’ve included a detailed blog post on Gift funds here, but simply put you gift your child money to help pay for the down payment.  If you choose this route make sure you tell your Mortgage company beforehand so they can verify and source the assets.
Being a Co-Borrower
As a Co-borrower you are obligated by the mortgage and have ownership in the house.  You will also have to go through the same Loan process as your kids so prepare to get asked for all the same documentation.


Ready to start the home buying journey? Just Click here to Schedule a free consultation.

How to Purchase a home with no money down

How to purchase a home with no out of pocket closing costs