Real Estate Agent with Joy Daniels Real Estate Group, Ltd.

All in the Family!In old movies and television shows, families are portrayed as having strong ties between parents, children, aunts, uncles and grandparents. Relatives seem to join together in close-knit unity, sharing their prosperity and giving each other emotional and financial support.

Something you may not have thought about, but is certainly worth some thought is the possibilty of family assistance when it comes to financing a new home.  Today, there are still opportunities to return to the values shared in earlier times. Younger family members can be assisted with a down-payment on a first home. Others might benefit from "family financing" on their next home.

By making funds available to family members for down-payments and mortgages, parents, grandparents, and other relatives can earn more favorable interest rates than their savings would normally earn. Such loans can be secured with a first mortgage providing financial protection for the lending family member.

If CDs are paying 1% and mortgage companies are charging home-buyers 5%, there is room for both the family borrower and family lender to benefit. By offering a 3.5% mortgage rate, the lending family member helps the borrower, while earning more than double the return available on savings.

Home ownership has historically provided a long-term increase in financial security. Secured loans from one family member to another can provide financial growth, strength and security, not to mention emotional satisfaction. Whether you are planning to buy, or have money to invest, talk to a family member first. Put your family ties to work for the good of the family.

Maybe your family can help you be able to say GOOD NIGHT - John Boy. . . in your own new home!


Posted by


Joy Daniels, GRI, ABR, CSP, e-PRO
2793 Old Post Road, Suite 200
Harrisburg, PA  17110

(717) 695-3177  office - Call TODAY and let me help you find your dream home! - Email TODAY and let me help you find your dream home!

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Comments (5)

Endre Barath, Jr.
Berkshire Hathaway HomeServices - Beverly Hills, CA
Realtor - Los Angeles Home Sales 310.486.1002

Joy what great advice to keep the family values. I can support your post by what I have seen in the past few years in Beverly Hills and vicinity... parents are giving 20-30% down payments for their children so they can buy a home. It would be virtually impossible for some one in their late 20's to buy a home in the greater Los Angeles area without parental help.

Jan 23, 2012 01:15 PM
Emily Medvec
eXp Realty LLC - Santa Fe, NM
Realtor | Serving Santa Fe & Northern NM

Joy, this is a great reminder there are resources within a family. One of our recent clients was new grandparent who wanted to purchase an investment property so in 15 years his grandson would have real estate equity to go to college. Very thoughtful post! Suggested.

Jan 23, 2012 03:08 PM
Mary Macy
Top Agents Atlanta Metro - Roswell, GA
Top Agents Atlanta Metro

Those were the days in the not so distant past, what has happened, everyone lives too fast paced a life these days and people just don't resource and work as families as much in this day.

Jan 23, 2012 03:27 PM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

My mother and her husband loaned me money to help me get in my first home.  And I paid them back as agreed.

Jan 23, 2012 03:31 PM
Joy Daniels
Joy Daniels Real Estate Group, Ltd. - Harrisburg, PA

Thanks Endre - I can imagine that sales on your coast have a totally different "avenue" than sales on the East Coast.  I am glad you agree with family assistance.  It seems to be important here too!

Thank you Emily for suggesting my post.   What a thoughtful grandparent and what a great way for the grandchild to learn finances, home management, etc., etc.  WOW!

You are right Mary, those thoughts are what inspired me to remind people that family is still really important!

That's the way things should be Gene - thanks for sharing!

Jan 24, 2012 12:46 PM

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