Use Your Home Equity to Help Someone You Love Buy a Home
For many first time buyers, the biggest obstacle isn't the monthly payment. It's coming up with enough money for the down payment and closing costs.
If you've built significant equity in your home, you may be able to use a portion of it to help a child or family member purchase a home without selling investments or refinancing your existing first mortgage.
We'll help you understand the options and determine whether using your home equity makes sense for your family's situation.
Put the equity you've built to work for the next generation.
Their Home Purchase. Your Home Equity.
You may not need to refinance your mortgage or become a borrower on their new home to help make their purchase possible.
1. Access a Portion of Your Equity
Use a HELOC or second mortgage while keeping your existing first mortgage in place.
2. Provide Funds for Their Purchase
The funds may be used toward a down payment, closing costs, or other eligible expenses associated with the purchase.
3. Help Them Buy on Their Own
Your family member can potentially qualify for and own the new home without adding you to their mortgage.
You provide the financial boost. They get the opportunity to become a homeowner.
There’s More Than One Way to Help
Helping a family member buy a home doesn't necessarily mean simply writing a check. The right approach depends on their needs, your finances, and what you're trying to accomplish together.
Give Them a Head Start
Use your equity to provide gift funds toward a down payment or closing costs.
Help Them Make a Larger Down Payment
Additional funds may help reduce the amount they need to finance and potentially make the purchase more manageable.
Create a Family Loan
In some situations, families may prefer to structure the assistance as a loan rather than a gift, allowing the funds to potentially be repaid over time.
The goal is to help them without putting your own financial security at risk. We'll help you understand the financing options on your side while coordinating with the strategy for their new home.
How Much Help Makes Sense?
Just because you have equity available doesn't mean you should use all of it. The right amount depends on what your family member needs and what fits comfortably within your own financial plan.
What Do They Actually Need?
A larger contribution isn't always necessary. We'll look at their purchase financing first to understand where your help could have the greatest impact.
What Can You Comfortably Access?
We'll consider your available equity, existing mortgage, monthly cash flow, and how much you want to keep in reserve.
What's the Best Way to Structure It?
We'll compare different equity options and coordinate them with your family member's purchase financing.
The best strategy helps them move forward without compromising the financial position you've worked hard to build.
Ready to Help Them Take the Next Step?
Your home equity may be able to help someone you love become a homeowner. We’ll help you understand what’s possible, compare the options, and build a strategy that works for both of you.
Let’s start the conversation.