Give Now

Helping Adult Children Get a House

Many young adults need help buying homes!

Tamara Costa is vice president of advanced planning at Fidelity. She says helping our children purchase a home is a way to transfer wealth or estate tax savings while financially impacting their lives. You can gift children a down payment. This is often the biggest hurdle to buying a house. A larger down payment can help someone qualify for a lower mortgage rate by making them more attractive as buyers. In 2023, you could give individuals up to $17,000 without having to pay a gift tax. Involving both parents raises the total to $34,000 per child which is IRS acceptable.

You can also make a family loan. IRS guidelines allow for intra-family loans with minimum interest rates. The annual interest rate for a long-term intra-family loan of 9 or more years is much lower than the current mortgage rate. The IRS requires an arms-length transaction – in which money is loaned in exchange for a promissory note. This must be properly documented and may require a tax attorney’s guidance. You can also become a landlord. Buy the house and let your child pay you rent. Set a reasonable amount because the IRS might flag rent-free living as a gift. Being a landlord can help your child develop healthy financial habits. Later, you can sell it to them. In each case, pay attention to tax laws. Providing a house for loved ones is a way to see your inheritance put to good use! It’s your reward for wise stewardship!

Does credit card debt prevent you from home ownership? Christian Credit Counselors can help. They’ll create a debt management plan that actually works! For more information call the Crown Helpline: 800-722-1976 or visit online at