Would getting a twenty percent downpayment gift from family and friends make it possible for more first time home buyers to purchase homes? Representative Dave Weldon thinks so. Weldon plans on introducing legislation that would allow family members to give tax free cash gifts equivalent to a twenty percent house down payment provided that the price of the home is 110% or less of the Federal Administration's local Median price.

Speaking at a symposium at Melbourne Association of Realtors, Florida Weldon said " If we can get Realtors all across the country embracing this, then we have a better likelihood of seeing it enacted into law".

Data Source: http://www.census.gov/const/uspriceann.pdf

What this means is that with the possibility of family members being able to contribute towards first time home buyers and the in the wake of 100% financing disolving, it may be easier for newcomers to the housing market to purchase homes and get mortgages. If approved, it could ease the slower market, open opportunities for resales and revitalize the housing market in some areas. Over a 40 year period the price of a  home rose an average of 6.26% while mortgages rates remained at or near 6%.

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