"Rising Trend: Homebuyers Seek Parental Support as Alternative Lenders"
With soaring home prices and high mortgage rates, many potential homebuyers are struggling to afford a house. As a result, more buyers are turning to alternative lenders, namely their parents, for financial assistance. Roughly 40% of buyers now tap into the "bank of mom and dad," up from one-third pre-pandemic. Younger house hunters are increasingly relying on family money to bridge the affordability gap, with nearly 40% of recent homebuyers under age 30 using cash gifts or inheritances for their down payment. Affordability remains a significant obstacle for would-be homeowners, with housing being less affordable today than in recent history. However, there are options available, such as government programs and loans with lower down payment requirements.