Helping the Next Generation Into Home Ownership
on JULY 8, 2011
Parents raise their children to be independent thinkers and doers. To succeed. To find personal and professional happiness. To eventually begin the next generation of family. And, somewhere along the line, to buy a home of their own.
Enter reality. Credit scores. Down payment. PMI insurance. Mortgage. Each can be a challenge for the under-30 crowd. But there are many opportunities for parents to help their adult children become homeowners. Here are a few:
Credit Support
A personal loan or cash gift can help clear outstanding debts, making it easier to qualify for a loan.
Co-Signing.
Working together may secure a better loan at a lower rate.
Down Payment Gift
Providing all or part of a 20% down payment could translate into lower interest rates, lower mortgage payments and no PMI insurance.
Full Loan Amount
Gifting your child a home frees their resources for home improvements, college debt repayment and other long-term financial goals.
There’s More at Stake Than a New Home
Gifting a down payment or buying a home for your child has benefits beyond the obvious. Wealth transfer is an excellent strategy to reduce your taxable estate, preserving your hard-earned money for future generations. Current tax law allows an annual gift tax exclusion of $13,000 and a lifetime gift tax exemption of $5 million per spouse. This means parents may give a combined annual gift of $26,000 per child tax free. Or if they want to give a larger amount, they can deduct it from their lifetime gift tax exemption.*
Your assets should stay in the family. The right home can help you do that. Pardee Homes invites you to research our communities and homes, construction standards and commitment to sustainable building. We’re confident you’ll find the right investment for your family.
Please call us if you have any questions... 423-2182008
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