While home prices are at value levels, and mortgage rates are low, the days of loans requiring no money down are clearly over. As a result, young couples wanting to take advantage of current market conditions are turning to their parents for help in purchasing their first home. According to the National Association of Realtors®, more than one-third (36 percent) of first-time buyers depended on family (and friends) for the funds to buy their first homes in 2010. That percentage is an increase of 28 percent of those seeking help the year before. Parents who want to lend their children a hand by giving/lending them money or co-signing a loan can help their children take advantage of a great opportunity.
We hope you found this topic to be both interesting and informative. At CENTURY 21 SEXTON & DONOHUE, we have a successful history of assisting buyers in your desired communities. We will walk you through the transaction, step by step. To schedule an initial meeting to discuss your real estate goals, contact us at (781) 665-6660. The office is conveniently located at 29 Essex St., just across the street from Shaw’s. We are "A Team Effort”. Learn how we earned our superior reputation!
HINT: For conventional mortgages, lenders usually allow parents to fund only half to three-quarters of the 20-percent down payment; rules prohibit family loans on the 3.5% down payment needed for government-insured FHA loans.
CENTURY 21 Sexton & Donohue
