Did your parents help you buy your first house? I know that down payment money is not supposed to be “borrowed,” but it can be a cash gift.
Of course, with a Fannie Mae loan, you can put down as little as 3 percent for a down payment, but there are strict limits on the prices of properties. I think this cute $165,000 1950s ranch in Westwood, Arlington would work. The giant mortgage service company that is publicly traded but also quasi owned by the Federal government went on a quest to find out what kind of assistance young adults get from their parents, and how that assistance impacts their likelihood of buying a home.
We are all bemoaning the drop in homeownership among young adults: since the Real Estate bust, homeownership rates of households headed by 25- to 34-year-olds has fallen by nearly 10 percent, to 36.9 percent in 2014, when it was almost 46 percent in 2006.
Of course, 2006 was the era of easy peasy money, no income documentation loans, etc. It clearly helped young home buyers.
So do kids buy more real estate if mom and dad make it easier to get a loan because they help with the down payment?