Kids and House Down Payment

[dg001]

My parents loaned us money for a down-payment on my first house interest free, which we repaid within a year (surprise bonus from work). They also paid full for in-state tuition, and for my wedding. Totally appreciate it, and acknowledge how much it helped us.

DD1 is off to college now, and we plan to do the same with both the kids, if they need it. I think the biggest help was my dad telling me - hey, do what you need to do without being afraid, I will always support you. That feeling is priceless.

 

[Librarian]

It wasn't our intention..

As usual I like to worry about things that have nothing to do with right now.

DD/DS are 15 and 10 respectively.

Most of you are much more seasoned than I am so I thought I would ask.

Did you help your grown kids with 1st house purchase? If so what did you do?

Also.... when the kids were "raised" - ie old enough, educated, whatever..... did you give any assistance financially be it a savings deposit, emergency funds, etc?


Thanks

Our children were blessed with a decent chunk of money from grandparents when the family partnership was dissolved.
DD immediately took half & put it in IRA fund & put away 6 mos. income in a HYSA for emergencies.
The rest she wanted to put down on a home.
But she needed to keep the payment close to what she was paying for rent...and property taxes are HIGH in Fort Worth (50% more than we pay in Lincoln NE & people think they are high here!)
So her price point had her looking at 2BR 1BA flips...and got outbid 3x last year.
We finally said STOP--look at 3BR 2BA homes. (better resale anyway) We offered to pay the difference to make her payment affordable. And pay us back when you sell.
We just consider it a part of our portfolio.
Her brothers were informed of the deal & know they can get the same deal if they need.
We didn't PLAN to...but the opportunity & resources were there.

 

[athena53]

We finally said STOP--look at 3BR 2BA homes. (better resale anyway) We offered to pay the difference to make her payment affordable. And pay us back when you sell.
We just consider it a part of our portfolio.

A friend did this with his elderly mother but structured it as a mortgage; he got a below-market mortgage interest rate (but still high enough to comply with IRS laws) and Mom got a steady source of income. What made it work, of course, is that he's as solid and dependable as you can get so there was no default risk.

 

[Librarian]

On a good note...

A friend did this with his elderly mother but structured it as a mortgage; he got a below-market mortgage interest rate (but still high enough to comply with IRS laws) and Mom got a steady source of income. What made it work, of course, is that he's as solid and dependable as you can get so there was no default risk.

DD is the neurotic one of the bunch when it comes to $.
The boys still haven't decided what to do with their $.
Youngest just graduated in business so once he gets settled in his job we will push him to do something with it.
Oldest has done a bit. I occasionally encourage him to do more...baby steps with that one!

 

[timbervest]

DS and his wife bought a house last year. They were able to qualify for a good rate and could close the transaction on their own, but it totally depleted their resources and the house needed some work. He negotiated with the bank and with the seller and was able to do the transaction on his own and toughed it through.

After the close, we ended up offering them some money to restore their funds and to help with repairs/renovations, but it was important to him that he did the deal on his own.

 

[Librarian]

LOL I relate!

DS and his wife bought a house last year. They were able to qualify for a good rate and could close the transaction on their own, but it totally depleted their resources and the house needed some work. He negotiated with the bank and with the seller and was able to do the transaction on his own and toughed it through.

After the close, we ended up offering them some money to restore their funds and to help with repairs/renovations, but it was important to him that he did the deal on his own.

DD did NOT want help from us...but she didn't want to draw from her investments either.
She was petrified--HOW would she pay us back??!!
When we said it is just part of our investment portfolio & pay us back when she sells, she was OK with that.
It got her a much better home for resale, too.

 

[Cayman]

My parents loaned us money for a down-payment on my first house interest free, which we repaid within a year (surprise bonus from work). They also paid full for in-state tuition, and for my wedding. Totally appreciate it, and acknowledge how much it helped us.

DD1 is off to college now, and we plan to do the same with both the kids, if they need it. I think the biggest help was my dad telling me - hey, do what you need to do without being afraid, I will always support you. That feeling is priceless.

You were blessed with wonderful parents! Additionally you'll pass that same "priceless feeling" of support on to your kids. Love that.