More parents help kids buy homes

25 12 2011

Twenty percent of baby boomers have helped at least one of their children achieve homeownership by purchasing a home for them, co-signing a mortgage or contributing to the downpayment, according to a survey by Better Homes and Gardens Real Estate.

Another 68 percent of those polled plan to help their children or grandchildren become homeowners down the road.

Experts attribute the trend to low home prices, parents wanting to provide some stability in their children’s lives and the fact that their children lack the necessary cash to make home purchases. These parents recognize that cash transactions offer better deals and quicker closings, or they know their children cannot afford a 20 percent downpayment or have a type of job, such as freelance or part-time, frowned upon by lenders.

However, experts insist that parents should not jeopardize their budgets or their retirement by helping offspring become homeowners, and they should make sure their children can afford the monthly costs and other expenses that accompany homeownership.

Source: CNNMoney

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