A lot of young buyers look to family for help with a down payment, but is it really necessary?
Thinking about buying a home soon? You’re not alone. Over one-third of Gen Z and Millennials planning to buy in the near future expect to get some financial help from family, especially for the down payment. In fact, a recent Redfin report says 36% are counting on family gifts, which is double the number from five years ago.
But here’s the thing: relying on family doesn’t have to be your first move. There are over 1,600 Down Payment Assistance (DPA) programs out there, designed to help people like you get into a home without needing a gift from mom and dad.
If you do decide to ask for family help, just make sure it’s done the right way. Ask them at least two months before you apply for a mortgage so the funds can be properly “seasoned.” Lenders require that down payment money sits in your account for a while—seasoning is just the time they need to verify it’s legit.
