Your children are eventually going to grow up, have children of their own, and own their first house. While purchasing a brand new house would be the ultimate gift for them, many families simply cannot afford to do it. There are, however, other ways that you can help your children turn their dream into a reality.
The first thing that you’re going to need to is to confirm whether or not your child or children are financially able to maintain the house. The last thing that you want is to invest a majority of savings into a future home for your child only to end up giving it up through foreclosure.
Having a down payment is one of the toughest financial responsibilities that one can afford. One of the most common ways that parents help their children pay for their home is to cover the down payment. With many mortgage companies requiring around 20% of the house’s cost being paid in lump sum, it’s becoming much tougher for someone to afford a house.
You can also agree to help them by paying some of their expenses. For example, there’s the monthly mortgage payment, the costs of utilities, and other fees that can add up quickly. By sitting down with your child and discussing what they’re paying monthly on average, you can agree to cover a certain portion of their expenses, which will free up their savings so they can focus on other things.
Another option that you have is to purchase a home and have your children rent it out. In this case, you’re helping your children out as well as paying off the house at the same time. This might not be for everybody but it is a solid option.