Millennials Use ‘Bank of Mom and Dad’ for Down Payment Help

Data Readings Converge to Show an Economy Regaining Momentum
Buyers’ concerns about the economy may hold back housing

Millennials Use ‘Bank of Mom and Dad’ for Down Payment Help

Author: Tory Barringer June 4, 2014

dsnews6-6-14Survey results released Wednesday shows half of Millennials plan to seek help from family in putting together down payment funds for a home.

According to a consumer survey conducted by Trulia, 60 percent of American adults age 18–34 say a lack of savings, poor credit, and severe debt stand between them and homeownership. As a result, 50 percent would have to ask for help from their parents or grandparents to put together enough money to clear the initial hurdle of making a down payment.

“Saving up for a down payment is a big obstacle and it can make the home buying process even more intimidating,” said Michael Corbett, a real estate expert at Trulia.

For those having to turn to the “Bank of Mom and Dad,” Corbett says all parties involved should treat the matter like a bank loan—complete with a written contract and negotiated monthly payments—in order to avoid “woes among family members.”

Read more…