I am going to give you an example - perhaps you can relate!
A mature couple has a grown child in his early 20's, he is working full time and is unable to save up a down payment for a home as he is renting. Home buying was not on his radar whatsoever - though here is how he was able to buy his first home, fully taking advantage of the very low interest rates and the current buyer’s market.
Mom and Dad ‘gifted’ his 5% down payment to make a purchase, using an equity line of credit on their current home. Upon the qualification process, it came to light that the son’s income was still not quite high enough to purchase a property that suited what he wanted - so to help with the qualification, he found a room-mate who then signed a lease agreement. Up to 50% of the rental income from his room-mate can be used as his total income - this brought his purchasing power up to the level he was looking for.
He found a home - purchased it and he moved in upstairs, his room-mate moved in downstairs. He now owns a home! This does not stop there - he decided to get one more room-mate to rent one of the bedrooms - now with the two room-mates, his mortgage payment is less than $100 per month.
Their son has gone from paying almost $1000 per month in rent to $100 per month on his own mortgage! He now has this extra money to pay back any ‘loans’ he may have to his parents! Or simply put down extra money on his mortgage!
Utilizing this avenue gives parents the gratification of knowing they helped their children get ahead in life faster and easier than they ever could on their own, as well as providing their child a strong sense of security knowing that he is years ahead for his financial future!
Definitely a Win - Win situation!
Let’s talk more on this topic - give me a call!