Want to Assist Your Child to Purchase a Home in California?

Helping your child buy a home in California is becoming more common than ever. According to recent surveys by the California Association of Realtors, a substantial number of first-time homebuyers statewide get financial support from parents—about 34% in 2023 and 27% in 2024.

However, many parents hesitate, fearing gift tax liabilities on large contributions. The good news is that in most cases, this concern is unfounded. Each year, the IRS allows you to give any number of people up to a specific amount of cash or other assets without triggering gift tax.

Of course, confirm with your CPA on specific amounts but for 2025 the annual exclusion amount is around $19,000. This means that a husband and wife should be able to gift their child about $38,000 and the child's spouse another $38,000, for a combined gift of $76,000 per year—completely tax-free.

8 Ways Parents Can Help Their Child Buy a Home in California

1. 1. Provide the down payment as a gift.
2. 2. Offer a private loan for their down payment.
3. 3. Finance the entire purchase price through a private loan.
4. 4. Co-sign the mortgage to improve approval chances.
5. 5. Buy the property in your name, then refinance later.
6. 6. Purchase a home and let the child live in it while renting or preparing to transfer ownership.
7. 7. Jointly purchase the home with the child.
8. 8. Use Private Money loan options in California to fund purchases for self-employed borrowers, those with credit challenges, or buyers needing fast, flexible financing solutions.

If looking to help your child purchase a home or want to explore creative real estate financing strategies that go beyond traditional mortgages, contact us at Pacific Direct Mortgage! We are proud to specialize in alternative mortgages — also known as Private Money and Hard Money. These can be that fast, short-term solution needed, to solve an immediate problem.

Reach us at 707-708-0797 or Visit our website at www.pacificdirectmortgage.com

Ken & Ari Walker

Husband & Wife Team
Phone: 707‑708‑0797 / Office: 1400 N. Dutton Ave #22 Santa Rosa, CA 95401
Ken: CA DRE Broker #01858042 / NMLS #1221130
Ari: CA DRE #01858152 / NMLS #2170867

Ken & Ari are a husband & wife team with combined 3+ decades in real estate and private money industries. They own Pacific Direct Mortgage & Real Estate, specializing in Private Money loans (also known as Hard Money home loans). Having helped thousands of Borrowers & working directly with Brokers, Agents and Lenders to help when needed with fast, flexible, alternative financing for real estate purchases and refinances throughout California. No issues with DTI ratios, credit issues, property condition, difficult to prove income ‑ we want to help!