A Time to Buy: Family Shared Equities
How can families work together in todays real estate market?
Challenge:
- The best listings still have multiple contracts
- Low money down contracts rarely win
- Low money down loans pay higher interest and exorbitant Private Mortgage Insurance fees
- 20% down is the minimum down payment to secure good homes
- 20% down offers the best rates and terms
- Most first time home buyers do not have 20% to put down
Solution
Family Shared Equity- Parents or grandparents put up 20% down
- If home is more expensive, make larger down payment
- Kids make the mortgage payments
- Parents are not on the loan, but they are on the title
- Family can decide how they split proceeds when the homes are sold:
- Parent can get their Down Payment back
- Parents can get down payment back with agreed upon interest rate
- Parents can get a % of net equity
- Parents can gift the down payment as part of future inheritance
Benefits
- Kids stop throwing their money away on rent
- Kids get a home and put down roots (and keep the grand kids close)
- Kids get best possible interest rates
- No Private Mortgage Insurance (PMI)
- No higher interest rates
- Kids get tax deductions
- Kids do not have to start with homes they will grow out of in 3-5 years
- 20% help them secure good homes
- Parents money is in a safe real estate investment
Win Win
Win for the kids, Win for the parents/grandparents
Learn More
Contact Casey and our team of experts today!
Casey@caseysamson.com
703-508-2535
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