Young Adults Turning to Mom and Dad for Down Payment Help
As The Home Story has discussed recently, while young adults are understandably hesitant to enter the homebuying process — feeling weighted down by the need to pay down student loans or other debt perhaps — homeownership is still one of their dreams.
But even with debt in hand, they often consider saving for a down payment as problematic. As previously reported, homebuyers often overestimate the amount required for a down payment — which on a Fannie Mae loan can be as little as 3 percent of the purchase price.
As young adults take longer to leave their parents’ nest, their hopes of homeownership do not seem to diminish. Fannie Mae staff wanted to know what kind of assistance young adults may receive from their parents and how that assistance impacts their likelihood of becoming homeowners.