As we enter the Holiday Season, the season of giving, many of us are looking for ideas for gifts for our loved ones. Why not give the gift that keeps on giving? The gift of homeownership, by providing hope and a goal of owning their first home.
Those who would like to own their first home may need help getting started, whether through support and guidance or financial assistance. Having the funds for a down payment and closing costs can seem like it is so far out of reach for some people.
If you have the means, this is where you can help. If you have a loved one hoping to own their first home, you can help them start this journey.
One easy way to do this is to open up a savings account in their name. Any amount will do to open the account. When you give them the account as a gift, whether it be a passbook or an online account, you can tell them it is for their New Home savings account.
This gift will open the door to discuss setting a plan to save for their down payment and closing costs. You can also advise them to set up an appointment with a local lender to go over their current financial situation and set a plan and goal for their future purchase.
Another option is to "gift" them a certain amount. Many loan programs allow family members to "gift" a portion of their down payment to assist in their purchase. Either way it’s a thoughtful gift that I’m sure they will greatly appreciate.