Helping Your Child Achieve Homeownership

First-time home buyers today face unique challenges due to high housing prices, student loan debt, and a competitive market. Real wages haven’t kept pace with these rising costs, making it harder to save for a down payment and afford a mortgage. Many young buyers also prioritize work-life balance, seeking homes in desirable neighborhoods, which may require more than 20% down to fit the mortgage payment into their budget.

How Parents Can Help

One impactful way parents can support their children is by contributing to their down payment fund. Instead of purchasing the latest toy or viral gift, consider making a meaningful investment in their future. The down payment is often the biggest hurdle for first-time buyers and overcoming it can transition them from renting to owning, helping them build equity and stability.

Gifting and Tax Benefits

Gifting under the gift tax annual exclusion amount allows parents to provide a significant financial boost without long-term dependence. Married couples can double the gift amount, and strategic timing (gifting in December and again in January) can further maximize the impact. It’s essential to consult with a tax advisor and estate planning attorney to navigate the tax implications and make the most of this opportunity.