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You paid him back for Grad school? That's why he has his own money, you have given him yours essentially.
He has a lifetime to earn money, you are (I'm assuming as you have an adult child) potentially nearing retirement. Fund that, don't enter into what could be a complex situation that could ruin your own retirement.
No crap. Paid for undergrad, graduate, helped with the first house, financing the second
Do whatever you want but when is the kid going to stand on their own ?
He is an adult. He needs to get his own mortgage. I would not buy a house for anyone using my line of credit. This is a recipe for a disaster. I wouldn't buy anyone a house period. If they want a house, then they can buy it. Just read through this forum and you'll see all kinds of disasters where friends and family lend money or mortgage houses. My answer is NO.
What makes you think he can’t get his own mortgage? I gave my daughter a mortgage and she was more than qualified to purchase through an over priced, traditional lender. Why not save the boat load of closing costs and get a safe return on your money greater than what a bank account is paying?
I’ve financed homes for several unrelated folks in the past and it has always been a win-win. If you have a responsible adult child who has proven themselves there is nothing to fear here. That being said, everything about is done officially, not much different than any other lender would do (minus all the extra costs).
I’d have son buy a house using his own money when he’s ready to move. Not before. If this particular home is not available then, there will be another. And he shouldn’t be buying ANYTHING jointly with the girlfriend until they are married.
Getting a HELOC to help your kid buy a house is ridiculous. Especially since he seems to be doing okay financially on his own.
What makes you think he can’t get his own mortgage? I gave my daughter a mortgage and she was more than qualified to purchase through an over priced, traditional lender. Why not save the boat load of closing costs and get a safe return on your money greater than what a bank account is paying?
I’ve financed homes for several unrelated folks in the past and it has always been a win-win. If you have a responsible adult child who has proven themselves there is nothing to fear here. That being said, everything about is done officially, not much different than any other lender would do (minus all the extra costs).
Did you borrow money from your HELOC like the OP is thinking of doing?
What makes you think he can’t get his own mortgage? I gave my daughter a mortgage and she was more than qualified to purchase through an over priced, traditional lender. Why not save the boat load of closing costs and get a safe return on your money greater than what a bank account is paying?
I’ve financed homes for several unrelated folks in the past and it has always been a win-win. If you have a responsible adult child who has proven themselves there is nothing to fear here. That being said, everything about is done officially, not much different than any other lender would do (minus all the extra costs).
Why not? Well the downside is default. If it’s always been a win for you great but let’s not ignore the downside as it’s sitting right in front of your face. No reason for willful blindness
The real estate market is significantly less competitive that it was earlier this year in many parts of the country. You should check with a realtor to see what it’s like where you live. There might not even be a need to make an all cash offer.
If your son still feels the need to make an all cash offer, there are mortgage companies that will bridge loan him cash & then convert it into a traditional mortgage upon closing.
Big boy needs to buy his own damn house. If you want to gift them some remodeling money, that’s another thing. But I wouldn’t do it via HELOC.
Did you borrow money from your HELOC like the OP is thinking of doing?
No. I didn’t need to. But I don’t know their overall financial situation. It may make more sense to do that if they have other assets they don’t want to use instead. If that’s all they have, I would be more hesitant.
Why not? Well the downside is default. If it’s always been a win for you great but let’s not ignore the downside as it’s sitting right in front of your face. No reason for willful blindness
The loan is secured by collateral. Not the highest of risk. A pain if you needed to take action for non-payment but it depends on a lot of other things and is not just reason to dismiss the arrangement outright.
This biggest risk in my mind is “if” the son fails to perform it will potentially harm their relationship. And if there are siblings will they expect the same level of housing assistance or otherwise feel he has been favored over them. Without knowing the OPs overall financial situation it’s hard to have an informed opinion.
if you read the first post by OP,it sounds like they are eager to have the son back in the same city.
That’s not impactful to the downsides of the actions more so justification to exposing themselves to risks and continuing to pay for the most major expenses their kid runs into
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