Author: Tory Barringer June 4, 2014
Survey 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.”
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