You Could Use Some of Your Equity To Give Your Children the Gift of Home
If you’re a homeowner, chances are you’ve built up a lot of wealth – just by living in your house and watching its value grow over time. And that equity? It’s something that could help change your child’s life.
Since affordability is still a challenge, a lot of first-time buyers are struggling to buy a home in today’s market. Even if they have a stable job and a solid plan, buying can still feel out of reach. But that’s where your equity could make all the difference.
To give you an idea, the average homeowner with a mortgage has $311,000 worth of equity, according to Cotality (formerly CoreLogic). That’s significant. And some parents are using a portion of their equity to help their children become homeowners, too.
According to Bank of America, 49% of buyers between 18 and 26 got money from their parents to use toward their down payment (see chart below):
Even though the data doesn’t specify how many parents used their equity, the wealth they’ve built through homeownership may have helped make it possible – especially given how much equity the average homeowner has today.
While what’s right for each person’s specific situation will vary on a case-by-case basis, that’s a powerful legacy to pass on. It helps those younger people buy a home, build equity of their own, and begin the next chapter of their life with a little less financial stress and a lot more stability. And for those parents? It’s a way to turn what they’ve built into something deeply meaningful.
This isn’t just about money. For many homeowners, it’s about being the reason their child gets to say, “we got the house.” And giving them the kind of head start they might’ve only dreamed of at their age. And here’s the part that really sticks. Compare the Market says:
“Of those who did receive monetary aid from parents and grandparents to buy a house, 45% of Americans said they would not have been able to purchase a house without financial support from parents and grandparents.”
Your equity could be the thing that makes homeownership possible for your children when they might not be able to do it on their own. So, here’s the question.
If helping your kids buy a home was more feasible than you thought, would you want to explore that option?
If you want to learn more or find out the best way to make it happen, talk to your lender and a financial advisor you trust.
You Could Use Some of Your Equity To Give Your Children the Gift of Home
There’s a rare kind of joy that comes with helping someone you love take their first step toward a dream. And for many parents today, that dream is seeing their children buy a home—to put down roots, build something of their own, and take a confident leap into adulthood. But in today’s market, that dream feels more like a distant star for many first-time buyers. Rising prices, stiff competition, and the sheer hurdle of affording a down payment are stopping some in their tracks.
But what if the key to opening that door has been quietly building up beneath your feet all along?
Yes, we’re talking about your equity—a powerful, often underestimated source of opportunity and transformation.
The Silent Strength of Equity
As a homeowner, you’ve likely seen your home value growth over the years. Whether you bought your home decades ago or just before the market started heating up, you’ve probably accumulated a significant amount of home equity. In fact, according to Cotality (formerly CoreLogic), the average homeowner with a mortgage is sitting on roughly $311,000 in built-up wealth.
That’s not just a number. That’s potential.
It’s the kind of wealth that can change lives—especially when passed down or shared with the next generation. Think of it as a modern-day legacy. Instead of leaving everything behind someday, you have the chance to create an impact right now.
The Struggle Is Real: Affordability for First-Time Buyers
Let’s not sugarcoat it—affordability is a real and growing issue in the housing market. While interest rates may fluctuate, home prices in many areas continue to climb. Pair that with student loans, rent increases, and stagnant wages, and it’s easy to see why so many young people are feeling the pinch.
According to Bank of America, nearly half—49%—of young buyers between 18 and 26 received financial support from their parents to cover the down payment on a home. And according to Compare The Market, 45% of those who received monetary aid from their parents or grandparents said they wouldn’t have been able to purchase a house without that help.
In other words, family assistance isn’t just helpful—it’s essential.
Giving the Gift of Home
There’s something poetic about the phrase “gift of home.” It’s not just a house. It’s a place where your children will host dinner parties, raise pets, grow families, or simply find a peaceful haven after a long day. By helping them buy a house, you’re giving more than walls and a roof. You’re giving sanctuary, stability, and a chance to dream a little bigger.
And your equity might be exactly what makes that possible.
Whether it’s through a cash-out refinancing option, a home equity loan, or even a shared title agreement, your built-up wealth could provide your children the boost they need to clear the down payment hurdle or even reduce their monthly payments.
You’ve already done the hard part—invested, maintained, and grown your property. Now, that investment can pay forward in a profound way.
Real Talk: Is This the Right Move for You?
Helping your children become homeowners isn’t a one-size-fits-all decision. It depends on your current financial situation, your long-term plans, and the needs of your kids.
Before making any decisions, it’s essential to talk to your lender and consult with a trusted financial advisor. These experts can help you understand how much of your home equity you can safely access without jeopardizing your own future security.
For homeowners in Palm Beach County, having local insights can make a world of difference. Whether you’re considering a home equity line of credit, looking into West Palm Beach refinancing options, or just exploring property loan advice in West Palm Beach, finding the right guidance matters.
Navigating the Numbers in West Palm Beach
West Palm Beach is no stranger to real estate growth. With its thriving economy, coastal lifestyle, and sunny charm, it’s become a highly desirable place to live. But like many hot markets, it’s also become increasingly competitive—especially for first-time buyers.
Thankfully, there are tailored financial resources designed to support both you and your children. Here’s a quick snapshot of options to explore:
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Affordable West Palm Beach home loans: Designed to keep monthly payments manageable for young professionals.
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First time home buyer loans in West Palm Beach: These often include lower down payment requirements, flexible credit terms, and potential government assistance.
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Best mortgage rates in West Palm Beach: Shop around for the most favorable interest rates—small percentages can mean big savings over time.
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West Palm Beach mortgage calculators: These tools allow you and your children to crunch numbers and plan out monthly budgets with clarity.
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West Palm Beach mortgage broker & commercial mortgage broker in West Palm Beach: Personalized support can help you find lending programs that align with your family’s needs.
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Mortgage preapproval in West Palm Beach: Getting preapproved gives your children a competitive edge when they’re ready to make an offer.
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Local mortgage lenders in West Palm Beach: There’s something invaluable about working with professionals who know the lay of the land—literally and figuratively.
Creative Ways Parents Are Using Their Equity
Not every family situation looks the same. And luckily, there are many flexible paths available. Some parents are:
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Co-signing on a loan to help secure better interest rates.
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Offering parental assistance via monetary aid to cover a portion or all of the down payment.
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Using equity to purchase a multi-generational home where everyone benefits.
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Taking out a home equity loan to gift a lump sum for closing costs.
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Partnering with their kids on a real estate investment property to build a shared income stream.
Some of these strategies not only help your children buy a home, but also serve as tools to build equity and financial independence moving forward.
The Emotional Return on Investment
The return on this kind of investment isn’t just dollars and cents—it’s smiles, sighs of relief, and phone calls that start with, “Guess what? We got the house!”
You get to witness your children cross a milestone they might have thought was out of reach. You give them breathing room in a high-pressure world. And you provide something more enduring than any graduation gift or wedding check could ever achieve: a foundation.
That’s the kind of legacy that echoes for generations.
Preparing for the Process
So how do you actually make this happen?
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Assess Your Home Equity
Reach out to your lender or a West Palm Beach mortgage broker to get a current evaluation. They’ll help determine how much equity you’ve accrued and what borrowing options are available. -
Connect with a Financial Advisor
Before you tap into anything, a financial advisor can help weigh the long-term impact and ensure you’re not putting your retirement at risk. -
Explore Mortgage Products for Your Kids
Investigate first time home buyer loans in West Palm Beach, affordable West Palm Beach home loans, and special local programs. You can also use West Palm Beach mortgage calculators together to model different price points and payment scenarios. -
Discuss Roles and Responsibilities
If you’re co-signing or entering a shared ownership agreement, it’s important to define expectations early—who’s paying what, who’s responsible for repairs, and what happens if life changes. -
Celebrate the Moment
Buying a home is a huge milestone. Take the time to enjoy it together.
Beyond the Transaction: Building a Better Future
This act—this gift of home—goes far beyond the transaction. It’s about showing your kids what’s possible, about instilling confidence, and about ensuring they have a solid foundation in an unpredictable world.
And in case you’re wondering if the younger generation is ready for this kind of responsibility—many are more prepared than you think. They’ve done the research. They understand the value of homeownership. They’re dreaming of stability, of investing instead of renting, and of making smart financial choices that their future selves will thank them for.
The Bottom Line
Your equity isn’t just a number on a spreadsheet—it’s a doorway. A bridge. A lifeline. It’s a chance to turn your home value growth into something tangible and life-changing. For your children, it could mean the difference between waiting and winning. Between hoping and happening.
If you’ve ever wondered whether you could really help your children buy a home, now is the time to explore that option. And if you’re in West Palm Beach, the tools, resources, and support are right at your fingertips.
Whether it’s through the guidance of a West Palm Beach mortgage broker, insights from a financial advisor, or the strategic planning of using local mortgage lenders in West Palm Beach, the dream is closer than you think.
Start the conversation. Talk to your lender. Make the call. Review the numbers.
And maybe—just maybe—this will be the year your kids finally say, “We got the house.”
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Questions, Comments or For more information you can call
Christian Penner Branch Manager at 561-316-6800 or email us at TheMortgageTeam@ChristianPenner.com
Approval Hotline: 561-316-6800
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