Buying a first home - did you get the downpayment from your family?

[Anonymous]

No. I purchased my 1st home while single at age 27. Was always independent. Did not expect financial support. Would'nt now, even in emergency.

[Anonymous]

Ha....quite the opposite. I was renting a condo my mother owned and then the market soared, she wanted to kick me out in order for her sell. Mind you, I was 24 yo and a single, working at the time that paid rent on time every month. The only way I could stay there was to buy the condo from her which I did, she made out with a 100k check. Thanks mom.... I hope that makes you feel better.

[Anonymous]

Anonymous wrote:Ha....quite the opposite. I was renting a condo my mother owned and then the market soared, she wanted to kick me out in order for her sell. Mind you, I was 24 yo and a single, working at the time that paid rent on time every month. The only way I could stay there was to buy the condo from her which I did, she made out with a 100k check. Thanks mom.... I hope that makes you feel better.

Wow. We have no help but this one seems rough coming from your mom. I hope you were able to sell it and make $200K!

[Anonymous]

I never asked my parents to help with a down payment but they have generously insisted. At 23 they put 20% down on a condo for my first home, and at 26 they are helping with 10% on my next home. We had always agreed they would keep any profit that was made on either sale, and on their first "investment" when we sell soon they will have made about 60k in 3 years. Their preference has always been that I borrow from them on their terms than from a bank should something happen that I had trouble paying a loan. I am very grateful for their assistance and feel that it is important that I repay them what they loaned me plus more than the interest they would have made if the funds had been invested. Honestly though I don't see anything wrong with our arrangement.

[Anonymous]

Anonymous wrote:I never asked my parents to help with a down payment but they have generously insisted. At 23 they put 20% down on a condo for my first home, and at 26 they are helping with 10% on my next home. We had always agreed they would keep any profit that was made on either sale, and on their first "investment" when we sell soon they will have made about 60k in 3 years. Their preference has always been that I borrow from them on their terms than from a bank should something happen that I had trouble paying a loan. I am very grateful for their assistance and feel that it is important that I repay them what they loaned me plus more than the interest they would have made if the funds had been invested. Honestly though I don't see anything wrong with our arrangement.

As long as you and they are paying all the taxes due on all this money changing hands, I guess there's nothing wrong with it.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I never asked my parents to help with a down payment but they have generously insisted. At 23 they put 20% down on a condo for my first home, and at 26 they are helping with 10% on my next home. We had always agreed they would keep any profit that was made on either sale, and on their first "investment" when we sell soon they will have made about 60k in 3 years. Their preference has always been that I borrow from them on their terms than from a bank should something happen that I had trouble paying a loan. I am very grateful for their assistance and feel that it is important that I repay them what they loaned me plus more than the interest they would have made if the funds had been invested. Honestly though I don't see anything wrong with our arrangement.

As long as you and they are paying all the taxes due on all this money changing hands, I guess there's nothing wrong with it.

Absolutely. Way too many red flags not to go through an accountant at every stage of the process. Yes the taxes are painful but better than being audited.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I never asked my parents to help with a down payment but they have generously insisted. At 23 they put 20% down on a condo for my first home, and at 26 they are helping with 10% on my next home. We had always agreed they would keep any profit that was made on either sale, and on their first "investment" when we sell soon they will have made about 60k in 3 years. Their preference has always been that I borrow from them on their terms than from a bank should something happen that I had trouble paying a loan. I am very grateful for their assistance and feel that it is important that I repay them what they loaned me plus more than the interest they would have made if the funds had been invested. Honestly though I don't see anything wrong with our arrangement.

As long as you and they are paying all the taxes due on all this money changing hands, I guess there's nothing wrong with it.

So glad you approve. That's really a load off.

[Anonymous]

As a parent, if I had the means to help my kid I would do so in a heartbeat. Provided doing so did not endanger by own ability to survive and thereby ending up a burden to my kid. That would defeat the purpose!

[Anonymous]

Anonymous wrote:As a parent, if I had the means to help my kid I would do so in a heartbeat. Provided doing so did not endanger by own ability to survive and thereby ending up a burden to my kid. That would defeat the purpose!

+1

That's why I've got $1M earmarked for both kids when they hit 30. Let them enjoy life from the fruits of my labour.

[Anonymous]

My parents gave me 10k when DH (then boyfriend) and I bought a condo. They told me it was my choice. The money could go to a down payment or a wedding, but they thought the down payment was a better investment. I agreed. Two years later when we did finally marry, DH and I paid for the wedding ourselves and spent substantially less then the 10k. Their contribution made me rethink my own views on saving and spending and I am extremely grateful for it.

[Anonymous]

Anonymous wrote:Hey guys,

First time posting in this forum.

I'm 31 and some of my friends are starting to buy their first places here in DC. Pretty much everyone I know who is buying is getting a HUUUUUUUUUGE check from their parents for the downpayment. I don't know a single person who is actually buying a place via their own hard-earned savings. Their parents are essentially giving them checks for $50-150K and then they have a very nice place.

The kicker here is that I make more money than most of these guys (I'm just a hair over $100K, most of these folks are development workers or fed making mid 70s).

How much help did you get from your family when you bought your first place? Did you ask your parents or did they come to you? I know my dad has some money, but I feel awkward asking him for a handout like that. At the same time, I feel like I'm flushing my money down the toilet by renting. Combine that with students loan payments and generally high cost of living, and I feel like I'm spinning my wheels here.

It would be good to hear how much DCUM readers received from family, if any, and the cost of your first purchased home.

Thanks!

Purchased first home when iras single at 27 years old. I put everything down from my own funds.

[Anonymous]

I bought my first home at 31 using $30K borrowed from my mother. I asked, she agreed, and I paid it back with interest a year later after saving aggressively and refinancing the condo. My parents also borrowed from their parents to buy a first home and paid it back about a year later.

I don't think I would have been comfortable taking the money as a gift, but borrowing felt okay.