Multi-Generational - Cross-Generational Home Buyers: Meeting Their Needs

Mortgage and Lending with NMLS #216987, IL Lic. 031.0006220, WI Licensed. APMC NMLS #175656 IL Lic 031.0006220/WI



Multi-Generational - Cross-Generational Home Buyers:

Meeting Their Needs


Multi-Generational Homes ... Cross-Generational Homes.  No matter what you prefer to call them, they're gaining in popularity all across America ...

Two statistics speak to this growing trend:

  1. 64 Million Americans, roughly 20% of the population, now live in a multi-generational home (Pew Research Center statistics, as of 2016, the last statistics available)
  2. 41% of Americans considering the purchase of a home are thinking of buying a home that will accommodate adult children or senior-aged parents (John Burns Real Estate Consulting survey) 

These stats prove that last century's custom of families' independent living arrangements is slowly morphing and transforming back into the more historical mode of living arrangement ... that of extended family and multiple generations living together under one roof.  

This trend is driven by many factors.  Those factors include the stresses of:
  • Financial Concerns  
  • Challenging economy 
  • Rising housing prices 
  • High child-care costs 
  • Senior-aged parents living longer or experiencing health concerns 
  • Student loans 
  • Children marrying later in life
  • Divorce 
  • Down Payment savings concerns
  • More

These changes are coming to all our communities. But are American communities prepared for the changes in housing demands?  

Not only existing homes are needing to being altered and modified to fit the changing needs of families.  Housing developers and homebuilders are now having to include multi-generational accommodations within their menu of new construction floor plans.  This is being done in order to accommodate and fulfill the needs of these families as the type of housing being requested for construction is also changing.  

This new trend also affects the needed physical attributes of subdivisions and communities.  Housing developers will be called upon to meet the new demands for multi-generational amenities provided within their developments for as well.  This can all prove to be a challenge.  

Often, new housing needs do not currently meet or "fit" with zoning rules and regulations now in place in many municipalities or counties.  Separate in-law or mother-in-law suites are not allowed ... or needed expansions of homes overflow the square footage restrictions in place.  Shifts in zoning and restrictions on denser housing may have to be changed, then implemented if this trend continues.

Another consideration brought into play with this type of housing is the borrowing of money.  When multiple generations consider home buying together, it also means that they will often need to finance that purchase together.  

When borrowing for a mortgage is involved in a multi-generational purchase, I strongly suggest that those involved in the home's financing should have a long, thorough, and honest talk together about finances, both in the short and long term.  

That inclusive talk should include:

  • Credit Scores (By ALL Parties)
  • Debt held
  • How delinquent payments on the newly-acquired loan can impact the credit of ALL borrowers on the mortgage
  • Bankruptcies, Judgments, Collections, if applicable
  • A formal document/"prenup". (What happens if one of the parties defaults or must "exit" or move out of the housing arrangement)
  • Individual contributions
  • Future maintenance/repair contributions
  • Employment stability
  • Financial stability
  • Savings available
  • A conversation regarding long-term plans
  • A conversation concerning how title will be held
  • Etc.


Borrowers considering this financing scenario must also know and understand how a mortgage lender will view a mortgage application of this type: 

  • How will credit scores be weighted when multiple applicants are involved?
  • How is debt viewed by mortgage underwriters?
  • Are Gift Monies included?
  • Are any applicants a Veteran or qualifying spouse, widow/widower?  (Please talk to an experienced VA Lender for the particulars on the requirements in play)
  • Who is supplying the Down Payment?
  • Who will actually OCCUPY at the time of Purchase?
  • More ...


While it's true that this type of lending scenario can certainly be more detailed in nature, it can also offer many extra benefits to the home buyers.  All is dependent on the amount of debt held by the applicants as all named borrowers are subject to underwriting scrutiny ... but the scope of the home search may be able to be broadened as a result of the number of borrowers included on the loan.  

Why?  Multiple applicants might be able to qualify for more home, more needed housing features, and a higher mortgage amount.

Are mortgage lenders and banks prepared for this new trend?  Can they fulfill the needs of future buyers?

Mortgage programs do currently exist that recognize this growing trend and need of multi-generational family homes.  Traditional loan options do exist that can be of assistance.  But Fannie Mae's "HomeReady" program (with Income Limitations) and Freddie Mac's HomePossible Program and HomeOne Programs are examples of financing programs that exist that can also be considered.

Bottom line:  The number of home buyers considering a multi-generational or cross-generational home has and is continuing to increase.  So finding the right lender ... an experienced lender ... capable of determining, then providing a mortgage that best fits the needs of multi-generational buyers is growing in importance too. 

When it comes time to buy your Multi-Generational/Cross-Generational family home, work with a lender that offers a full menu of mortgage programs.  That way you'll find the most advantageous financing for all involved.



* Hoping to Buy or Refinance a Home or Investment Property in the New Lenox - Will County - Chicagoland - IL/WI area?

Contact Me! I'll get you the facts, info, and figures you need to make the best home buying and mortgage financing decisions for you and your future.
I'm easily found at: 

Gene Mundt

Mortgage Originator  -  NMLS #216987  -  IL Lic. #031.0006220  -  WI License #216987
American Portfolio Mortgage Corp.
NMLS #175656
Direct:  815.524.2280
Cell/Text:  708.921.6331
eFax:  815.524.2281
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Gene Mundt

 Mortgage Originator  -  NMLS #216987    

                                 IL Lic. #031.0006220  -  WI License #216987                                                                                                    

NMLS #175656


Gene Mundt, Mortgage Originator,  40+ years of #mortgage experience, will offer you exemplary mortgage service and advice when seeking:  #Conventional, #FHA, #VA, #Jumbo, #USDA, and Portfolio Loans in #Chicago and the greater Chicagoland region, including:  The #Lincoln-Way Area, #Will County, (#New Lenox, #Frankfort, #Mokena, #Manhattan, #Joliet, #Shorewood, #Crest Hill, #Plainfield, #Bolingbrook, #Romeoville, #Naperville, #Wilmington, #Peotone, etc.), #DuPage County, the City of Chicago, #Cook County, and elsewhere within IL and Wisconsin. 


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This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Home Buying
Illinois Will County New Lenox
Chicago Area Real Estate BUZZ!
housing market
housing trends
multigenerational home buyers
crossgenerational home buyers
changing housing demand
zoning and regulations
multigenerational mortgage lending

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Michelle Carr Crowe,Altas Just Call...408-252-8900!
Get Results Team...Just Call (408) 252-8900! . DRE #00901962 . Licensed to Sell since 1985 . Altas Realty - San Jose, CA
Family Helping Families Buy & Sell Homes 40+ Years

Yes, in my Cupertino/West San Jose market we see many multi-generational families living together.

Sep 03, 2019 12:53 PM #1
Ron and Alexandra Seigel
Napa Consultants - Carpinteria, CA
Luxury Real Estate Branding, Marketing & Strategy


This is a wonderful post for those going into a multi-generational lifestyle.  Your points are excellent and should be seriously considered .  A

Sep 03, 2019 12:54 PM #2
Nina Hollander
Coldwell Banker Residential Brokerage - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Great post about issues that impact multi-gen living. Thus far, in my market I don't see a lot of it and I certainly haven't seen much in the way of housing to accommodate it. Hopefully, this will start to change.

Sep 03, 2019 01:01 PM #3
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Good afternoon Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi - these items will get much more discussion.  I see lots of advantages with this arrangement.

Sep 03, 2019 01:05 PM #4
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Gene, I am receiving more calls from families thinking of combining families, especially with elderly parents.   Great post.

Sep 03, 2019 02:33 PM #5
Anna Banana Kruchten CRB, CRS 602-380-4886
Phoenix Property Shoppe - Phoenix, AZ
Arizona's Top Banana!

Hi Gene we'e done more multi-gen homes this past 6 years or so than before. It definetly is a growing trend and it makes so much sense too for many families.  Closed one recently where we had 3 sales that needed to close before the close of the new property. A bit dicey but it all happened, a few days later than we all had planned for, but we got it done.  Everyone is delighted with the new home now!

Sep 03, 2019 04:36 PM #6
Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Gene- I'm so glad that this was featured. This is another one of your well written and informative posts for everyone, not just consumers. 

Sep 03, 2019 05:48 PM #7
Nnenna Juliana

I think this article is a whole lot beautiful with good content. Keep it up. Nasty C God Flow

Sep 03, 2019 06:05 PM #8
Laura Cerrano
Feng Shui Manhattan Long Island - Locust Valley, NY
Certified Feng Shui Expert, Speaker & Researcher

I’m coming back to this topic because I’ve seen an increase in this type of thing. Again, you’re right on the money here. /)

Sep 03, 2019 10:00 PM #9
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

Gene shares his counseling abilities while serving up mortgage do's & don'ts

Sep 04, 2019 06:27 AM #10
John Henry
John Henry Masterworks Design International, Inc. - Orlando, FL
Residential Architect, Luxury Custom Home Design

Great rundown of this resurging housing type and consequences/solutions when it comes to financing.  Thank you very much.

Sep 04, 2019 09:18 AM #11
Debb Janes EcoBroker and Bernie Stea JD
ViewHomes of Clark County - Nature As Neighbors - Camas, WA
REALTORS® in Clark County, WA

Thank you, thank you, thank you for talking about this, Gene. As you know it's one of two of our niche specialities. I'm going to save this to give to families who are considering this type of housing solution. D 

Sep 04, 2019 02:28 PM #12
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Gene - your post is a good one that should be incorporated into each initial cross generational buyer meeting.  Proper preparation helps make success possible.  

Sep 04, 2019 05:42 PM #13
Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Divorce

I am sure that Debb Janes EcoBroker and Bernie Stea JD were well aware of these statistics...had no idea that they were soooo high ! 

Sep 11, 2019 01:13 AM #14
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Gene Mundt, IL/WI Mortgage Originator - FHA/VA/Conv/Jumbo/Portfolio/Refi

708.921.6331 - 40+ yrs experience
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