Second home for us, rental for the kids
My wife and I live in Vancouver WA and are looking for a second home. My wife and I very much want to get our adult daughter and her family into a house but the CU I called told me that we'll need 20% down to qualify for a loan on a second home. That seems pretty steep to me but arguing with the guy wasn't going to help any. For our daughter and her new husband to get a loan, they only need 3%, unless the CU finds out we gave them the money for the down and then it goes up to 20% again.
We don't have an agent, but will probably need one since we're all novices. Resources and pointers are very much appreciated.
Jon
Most Popular Reply
Personally I'd keep the lines clear. Let them use their money for their life and you use yours. If you want to give them a gift to buy a home, that's great. If you are trying to circumvent the process to avoid having to pay 20% down and using their ability to put 3% down, that could turn into a mess and there is a reason why the bank wants 20% down. If you are looking to buy a home and rent it to your kids. Are you able to pay the mortgage if and when they "can't" pay rent for whatever reason. Because the new husband loses his job or any number of other reasons why they can't pay mom and dad? Once again, let them live their life and you yours. Keep things clean and clear and your family life and dynamics associated with it will stay that much better. I don't lend money to friends or family or get involved in any business dealings with them, I don't want the relationship to get ruined. If they need something, if I have it, I will give it to them, but never lend or do business.