Most first-time buyers can qualify for a mortgage loan, but they may need help from parents to make the down payment or closing costs on their home. There are loan programs that minimize the down payment and closing costs for first-time buyers. These programs usually require that 3 to 5 percent of the purchase price come from the buyers' funds, not from a loan or gift. Most lenders ask for the last three months' bank records. The borrower will be asked to reveal the origin of any large deposits. If the money comes from the homebuyer's parents, the lender may not consider those funds when qualifying the buyers.

Parents who are planning to help their children finance a home should transfer any funds several months before the house-hunting process begins. If it is a loan rather than a gift, a formal re-payment agreement should be drawn up between parents and children to eliminate potential misunderstandings or future complications with either estate.

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Barbara Vander Meulen
Keller Williams Realty
229 Rte 32
Central Valley, NY 10917
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Buying a home is one of the biggest decisions you will make. I have been licensed for the last 10 years and truly enjoy guiding people through the process of becoming homeowners. Finding a Realtor that is Full Time in the Business, that will respond to you and your questions is key. I have great follow up skills which helps keep all parties involved on track. Take a look at what my clients have to say about my service.

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