Snoqualmie Market

Archive for February, 2009

Your folks or grandparents may like, perhaps even love, to help you with the down payment and closing costs for your dream home. Why would they do that? Well, perhaps they had financial assistance from family when they bought a home, way back when. Another possibility is that they have more money accumulated for their future and retirement than they may need. If they have substantial assets, holding onto all these assets until their death could trigger unnecessary estate taxes. A final reason that they may be willing to lend you money is that they are bank-and-bond-type investors and are earning paltry returns.

If your parents or grandparents (or other family members, for that matter) broach the topic of gifting or lending you money for a home purchase, go ahead and discuss the matter. But in many situations, you (as the prospective homebuyer) may need to raise the issue first. Some parents just aren’t comfortable bringing up the topic of money or may be worried that you’ll take their offer in the wrong way.