Financial Aid from Parents Grows More Important for Young Homebuyers

According to Zillow Real Estate Research, presumed first-time homebuyers who bought after the recession were roughly twice as likely to have received down payment assistance from family and friends compared to those who bought prior to the recession.

“The growing importance in the home-buying process of loans and gifts from family and friends underscores both the challenge that securing a suitable down payment represents for younger homebuyers, and their resourcefulness in finding ways to clear the down payment hurdle,” Zillow Real Estate Research reports.

In terms of demographics, their study found that Latinos and Asians are more likely to receive down payment assistance from family and friends than blacks and whites.

Read more