Veterans United: Generational Help Playing Big Part in Homebuying

(Image courtesy of SHVETS production/pexels.com)

Veterans United Home Loans, Columbia, Mo., released a new survey finding that 59% of parents have provided or plan to provide some financial assistance to help their child buy a home.

For veterans, that number goes up to 68%. Just shy of 50% of civilians reported providing or planning to provide such help.

“For many families, helping a child buy a home has become less of an optional gesture and more of a practical response to today’s affordability challenges,” said Chris Birk, vice president of mortgage insight at Veterans United. “Parents want to give their children a stronger footing, whether that means helping them bridge upfront costs, qualify for financing or start building wealth through homeownership.”

How that assistance is given varies. One-third said they have provided or plan to provide a down payment contribution, 30% said they are gifting cash and 30% said they have or will pay off debt to improve their child’s financial position ahead of buying.

Some are considering closing cost assistance, at 27%, allowing their child to live at home to save money, at 27%, paying for furniture or improvements, at 25%, and covering moving expenses, at 23%.

Do parents expect to be paid back? That’s mixed–57% said the assistance is a gift, 20% say it’s a loan and 23% consider it a combination of both.

In terms of dollar amounts, 30% have provided or expect to provide between $25,000 and $49,999, 23% listed $50,000 to $99,000 and 12% have provided or expect to provide between $100,000 and $199,999.

Some go further, with 18% reporting that they have co-signed a mortgage or plan to do so, and 17% said they bought a house for their child outright or plan to do so.