Have you considered Real Estate as a path to privacy for yourself and independence for your adult child? As the lightbulb pops on in your head, you may be saying things like; I’m not buying my kid a house that’s too expensive, OR they need to tough it out and earn homeownership as I did. That’s a great point, but, while you’re thinking “old school” thoughts, consider the value of your privacy and the current expense of consumption as they live like YOU without “toughing” it out.
Options to consider:
I did more Non-Occupying Co-Borrower loans in the past two years than in the previous seven years combined. This is when your adult college-age child has a credit score but needs help to qualify with income and assets. Many parents are choosing this option as an investment in lieu of spending money at college campus dorms. They still qualify as first-time homebuyers and have potential benefits. Even if the house is not perfectly move-in ready, the “toughing” it out part is called sweat equity. Amazing transformations take place with fresh paint and flooring.
With a full-time working adult in your home, loan qualification is possible because they have credit and capacity (low debt) but need collateral (money). Consider a conventional first-time home loan with a 3% down payment using gifted funds from a relative. No cosigning, no co-borrower, just the funds to close. It’s not a handout it’s a hand up into the process.
They can also use grant and down payment programs such as Texas State Affordable Housing Corporation. Register virtually for our monthly homebuyers’ class for more tips on getting your adult kid out of your house in 2023. It is on the 1st Thursday of each month at 5:30 pm. For questions,