If you’re a homeowner, chances are you’ve built up much wealth just by living in your house and watching its value grow over time. And that equity? It’s more than just a number – it’s a powerful financial tool. With the proper planning, you can use your equity to give your children the gift of home, helping them take their first step into homeownership.
Since affordability is still challenging, many first-time buyers struggle to buy a home in today’s market. Buying can still feel out of reach even if they have a stable job and solid plan. But that’s where your equity could make all the difference.
Homeowner with a Mortgage
According to Cotality (formerly CoreLogic), the average homeowner with a mortgage has $311,000 worth of equity. That’s significant. Some parents are using a portion of their equity to help their children become homeowners, too.
According to Bank of America. 49% of buyers between 18 and 26 got money from their parents for their down payment (see our chart).
Even though the data doesn’t specify how many parents used their equity, the wealth they’ve built through homeownership may have helped make it possible, especially given the amount of equity the average homeowner has today.
While what’s right for each person’s situation will vary on a case-by-case basis, that’s a powerful legacy to pass on. It helps younger people buy a home, build equity, and begin the next chapter of their lives with a little less financial stress and a lot more stability.
And for those parents? It’s a way to turn what they’ve built into something deeply meaningful.
This isn’t just about money. For many homeowners, it’s about being the reason their child gets to say, “We got the house.” And giving them the head start they might’ve only dreamed of at their age. And here’s the part that sticks. Compare the Market says:
“Of those who did receive monetary aid from parents and grandparents to buy a house, 45% of Americans said they would not have been able to purchase a house without financial support from parents and grandparents.”
Bottom Line: What are Real Estate Experts Saying?
Your equity could be the thing that makes homeownership possible for your children when they might not be able to do it on their own. So, here’s the question.
If helping your kids buy a home was more feasible than you thought, would you want to explore that option?
Suppose you want to learn more or find the best way to make it happen. Talk to your lender and a trusted financial advisor.
Related Posts
- Home Equity May Help You Buy Your Next Home
- Benefits of Using Your Equity To Make a Bigger Down Payment
