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Should You Help Your Adult Child Buy A Home?

Should you help your adult child buy a home?

Recorded June 8, 2026 · 2 min 25 sec

Recorded June 8, 2026. Figures and market conditions reflect information available on that date and may have changed since. Independent research by Todd Hanley; not the views of United Direct Lending.

Research sources

145 sources were consulted in Todd Hanley’s independent research for this video. The 36 below were cited by two or more separate research passes; every link was checked when this page was built.

Government & primary data (10)
Research & institutions (8)
News & analysis (18)
Also consulted (109)

Full script

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Should you help your adult child buy a home?

For many parents, the question is not whether their child is responsible enough to own — it is whether today's market gives them a fair shot without family help.

According to the NAR 2025 Profile of Home Buyers and Sellers,

first-time buyers fell to just 21 percent of the market, and the median age climbed to 40. That is not a normal starter-home market. That is a market where many capable young adults are delayed by an extra decade — not because they are irresponsible, but because the math is harder.

There are five common ways parents can help.

One. Gift the down payment. The child owns the home and takes the mortgage. The parent stays off the debt. The IRS annual exclusion for 2026 is 19,000 dollars per recipient, and the lifetime exemption is 15 million. Gifts above the annual amount usually require Form 709 — confirm with a CPA.

Two. An intra-family loan. The parent lends, the child repays, with a written note and IRS-compliant interest. Have the lender review it, because a family loan can affect the child's debt-to-income ratio.

Three. Co-sign or co-borrow. This can help a child qualify, but it makes the parent legally responsible if anything goes wrong. It is usually the riskiest structure for the parent.

Four. The parent buys, the child rents. This preserves control, but the parent is the landlord — not the child the owner.

Five. The parent buys now, and the child buys or refinances into the home later.. This only works if the exit plan is written down at the start.

Before choosing any of these, run three checks. Can the parents help without weakening their own retirement? Can the child afford the full monthly cost — taxes, insurance, maintenance, all of it? And will everyone put the agreement in writing?

For most families, the default that works is a gifted down payment. It is clean. The child gets ownership. The parent stays off the mortgage. The riskiest is usually co-signing.

The rule is simple: talk like a family, document like a business.

If you are thinking about helping your child buy, let's compare the structures before you move the money.

Want a transparent, data-driven mortgage process—with no guesswork? Call me today. Unlock your homeownership dream with the Todd Hanley Mortgage Team.

Want to talk through your own numbers?

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Independent research and commentary. The research, data analysis, and opinions in this video and on this page are Todd Hanley's own and do not represent the views of United Direct Lending. They are not lending advice and are not tied to any loan program, product, or lending decision.

Educational content only. Not a commitment to lend, a rate quote, or an offer of credit. Programs, rates, fees, and guidelines are subject to change without notice; not all borrowers will qualify. Todd Hanley, RICP® | NMLS #1013665 | United Direct Lending NMLS #1749719 | Equal Housing Opportunity.

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Duration30 minutes
WithTodd Hanley, RICP®