Skip to main content

Author: Seth Pfaehler

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): 

a diagram of a graphEven 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.”

Bottom Line

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.

Housing Market Forecasts for the Second Half of 2025

a screenshot of a mobile app

Some Highlights

  • Are you wondering what to expect if you buy or sell a home in the second half of the year? Here’s what the expert forecasts tell you.
  • Mortgage rates are expected to come down slightly. There will be more homes available for sale. And as inventory rises, home price growth will moderate.
  • Want to know what this could mean for your plans? Connect with a local agent and talk through it together.

Why Would I Move with a 3% Mortgage Rate?

If you have a 3% mortgage rate, you’re probably pretty hesitant to let that go. And even if you’ve toyed with the idea of moving, this nagging thought may be holding you back: “why would I give that up?”

But when you ask that question, you may be putting your needs on the back burner without realizing it. Most people don’t move because of their mortgage rate. They move because they want or need to. So, let’s flip the script and ask this instead: 

What are the chances you’ll still be in your current house 5 years from now?

Think about your life for a moment. Picture what the next few years will hold. Are you planning on growing your family? Do you have adult children about to move out? Is retirement on the horizon? Are you already bursting at the seams?

If nothing’s going to change, and you love where you are, staying put might make perfect sense. But if there’s even a slight chance a move is coming, even if it’s not immediate, it’s worth thinking about your timeline.

Because even a year or two can make a big difference in what your next home might cost you.

What the Experts Say About Home Prices over the Next 5 Years

Each quarter, Fannie Mae asks more than 100 housing market experts to weigh in on where they project home prices are headed. And the consensus is clear. Home prices are expected to rise through at least 2029 (see graph below):

a graph of a graph showing the price of risingWhile those projections aren’t calling for big increases each year, it’s still an increase. And sure, some markets may see flatter prices or slower growth, or even slight dips in the short term. But look further out. In the long run, prices almost always rise. And over the next 5 years, the anticipated increase – however slight – will add up fast.

Here’s an example. Let’s say you’ll be looking to buy a roughly $400,000 house when you move. If you wait and move 5 years from now, based on these expert projections, it could cost nearly $80,000 more than it would now (see graph below):

That means the longer you wait, the more your future home will cost you. 

If you know a move is likely in your future, it may make sense to really think about your timeline. You certainly don’t have to move now. But financially, it may still be worth having a conversation about your options before prices inch higher. Because while rates are expected to come down, it’s not by much. And if you’re holding out in hopes we’ll see the return of 3% rates, experts agree it’s just not in the cards (see graph below): 

a graph with lines and numbersSo, the question really isn’t: “why would I move?” It’s: “when should I?” – because when you see the real numbers, waiting may not be the savings strategy you thought it was. And that’s the best conversation you can have with your trusted agent right now.

Bottom Line

Keeping that low mortgage rate is smart – until it starts holding you back.

If a move is likely on the horizon for you, even if it’s a few years down the line, it’s worth thinking through the numbers now, so you can plan ahead.

What other price point do you want to see these numbers for? Connect with a local agent to have a conversation, so you can see how the math adds up. That way, you can make an informed decision about your timeline.

Don’t Let Student Loans Hold You Back from Homeownership

Did you know? According to a recent study, 72% of people with student loans think their debt will delay their ability to buy a home. Maybe you’re one of them and you’re wondering:

  • Do you have to wait until you’ve paid off those loans before you can buy your first home?
  • Or is it possible you could still qualify for a home loan even with that debt?

Having questions like these is normal, especially when you’re thinking about making such a big purchase. But you should know, you may be putting your homeownership goals on the backburner unnecessarily.

Can You Qualify for a Home Loan if You Have Student Loans?

In the simplest sense, what you want to know is can you still buy your first home if you have student debt. Here’s what Yahoo Finance says:

” . . . student loans don’t have to get in your way when it comes to becoming a homeowner. With the right approach and an understanding of how debt impacts your home-buying options, buying a house when you have student loans is possible.“

And the data backs this up. An annual report from the National Association of Realtors (NAR), shows that 32% of first-time buyers had student loan debt (see graph below): 

a graph of a student loanWhile everyone’s situation is unique, your goal may be more doable than you realize. Plenty of people with student loans have been able to qualify for and buy a home. Let that reassure you that it is still possible, even as a first-time buyer. And just in case it’s helpful to know, the median student loan debt was $30,000. As an article from Chase says:

“It’s important to note that student loans usually don’t affect your ability to qualify for a mortgage any differently than other types of debt you have on your credit report, such as credit card debt and auto loans.”

If your income is steady and your overall finances are solid, homeownership can still be within reach. So, having student loans doesn’t necessarily mean you have to wait to buy a home.

Bottom Line

Having student loans doesn’t mean buying a home is off the table. Before you count yourself out, talk to a lender to get a clearer picture of what you can afford and how close you are to taking the first step toward homeownership.

Stay informed