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It is common for first time home buyers to get a significant portion(if not all) of their first deposit for their mortgage(often 20%) from either family assista

It is common for first time home buyers to get a significant portion(if not all) of their first deposit for their mortgage(often 20%) from either family assistance or inheritance. This is especially common in the more expensive housing markets in the US.

throwaway-1283 8y ago
Is that true? The last article I read about millennial homebuyers is that the reason outstanding mortgage balances are increasing is because more millennials are putting down less than 20% because they couldn't otherwise afford to.
- bradlys 8y ago
  From anecdotal data, yes - very true. I think you're seeing a wider spread than before. People who are trying to get homes with less % down than before and people who are using their parents' money. An article I read (that used anecdotal data from real estate agents) was suggesting that around 35% of new home buyers in SF Bay are getting partial to full down payment from parents. Anyone in my social circle who bought their first home (anywhere on the west coast) and is in their 20's or 30's, they didn't do it by themselves. Their parents chipped in quite a bit.
- astura 8y ago
  In a homeowner and the vast majority of my peers are too. I know -ZERO- people who had this sort of financial assistance for a down payment. We all saved up our own money. I live on the east coast though.
weberc2 8y ago
Well shit. I'll be right back; I have to call my parents.
elliotec 8y ago
Common? 20%? You are in a rich kid bubble my friend
- dan-robertson 8y ago
  I’m not convinced this is biased. The GP says it’s common (in whatever market they are in) for house buyers to get help with a down payment (up to 20%) from parents, not that it is common for people to be offered that help from their parents. One could suppose that those people who don’t get help are less likely to be homebuyers and so aren’t included in GP’s anecdote.

throwaway-1283 8y ago

Is that true? The last article I read about millennial homebuyers is that the reason outstanding mortgage balances are increasing is because more millennials are putting down less than 20% because they couldn't otherwise afford to.

bradlys 8y ago
From anecdotal data, yes - very true. I think you're seeing a wider spread than before. People who are trying to get homes with less % down than before and people who are using their parents' money. An article I read (that used anecdotal data from real estate agents) was suggesting that around 35% of new home buyers in SF Bay are getting partial to full down payment from parents. Anyone in my social circle who bought their first home (anywhere on the west coast) and is in their 20's or 30's, they didn't do it by themselves. Their parents chipped in quite a bit.
astura 8y ago
In a homeowner and the vast majority of my peers are too. I know -ZERO- people who had this sort of financial assistance for a down payment. We all saved up our own money. I live on the east coast though.

weberc2 8y ago

Well shit. I'll be right back; I have to call my parents.

elliotec 8y ago

Common? 20%? You are in a rich kid bubble my friend

dan-robertson 8y ago
I’m not convinced this is biased. The GP says it’s common (in whatever market they are in) for house buyers to get help with a down payment (up to 20%) from parents, not that it is common for people to be offered that help from their parents. One could suppose that those people who don’t get help are less likely to be homebuyers and so aren’t included in GP’s anecdote.