First Time Homebuyers are Relying on Parents to Help

Great article from Bloomberg (graphic came from the article as well).

Last year, 27 percent of those purchasing a home for the first time received a cash gift from relatives or friends to come up with a down payment, according to data from the National Association of Realtors. That’s up from 24 percent in 2012 and matches the highest share since the group began keeping records in 2009.

Make sure you read to the very end….it has some important information about how lenders will expect to account for the parent’s cash gift.  They want a written gift letter from the parents.   Please make sure to keep this in mind if you receive a cash gift.