HELPING CHILDREN WITH A DOWN PAYMENT — IS IT POSSIBLE WITHOUT DRAINING YOUR SAVINGS?
- johnathanmcquoid
- Jan 18
- 2 min read
Home prices are still high — and most first-time buyers can’t save fast enough.
Here are 4 REAL ways parents are helping their kids enter the market sooner… find out how 👇
1️⃣ Gifted Down Payments Are More Common Than Ever
More buyers are getting help from family — and lenders now expect it.
Why?
✔️ incomes haven’t kept up with home prices
✔️ rent makes it hard to save
✔️ kids get approved faster with support
A simple gift letter is usually all the lender needs.
2️⃣ Parents Are Using Home Equity To Help
Many parents access a portion of their own home equity to support a child’s purchase.
Options include:
✔️ HELOC
✔️ refinance
✔️ reverse mortgage (for 55+)
This lets parents help without emptying retirement accounts or savings.
3️⃣ Reverse Mortgages Are Not What People Think
A reverse mortgage lets homeowners 55+ access tax-free cash without monthly payments.
Key benefits:
✔️ you stay in your home
✔️ no payment until you move or sell
✔️ you keep future equity growth
It’s a way to give a meaningful early inheritance while protecting cash flow.
4️⃣ Early Inheritance Helps When It Matters Most
Kids don’t need an inheritance in their 60s — they need help NOW.
Giving support earlier can:
✔️ reduce years of renting
✔️ help them grow equity sooner
✔️ create stability for young families
You also get to see the impact while you’re here to enjoy it.
💬 Final Thought
Helping your children with a down payment doesn’t have to jeopardize your own financial security.
If you want to explore safe, smart options — from gifts to equity strategies — message The Frontline Mortgage Group anytime. 💬