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The Bank of Mom and Dad

Bank of mom and dad

How Mom and Dad are helping millennials purchase homes and build wealth.

With the high cost of housing in some areas, it’s not surprising that potential homeowners are looking at creative ways to make a purchase happen.  Achieving the dream of homeownership is especially challenging for aspiring buyers under the age of 35. Millennials are often struggling to save for a down payment while financially burdened with ever-increasing rent and student debt.


The family tree.


According to a Zillow estimate, 21% of millennials in the U.S. currently live at home with their parents.  It’s becoming more common for this generation to leave the nest later in life in comparison to previous generations. This is a significant jump from the 11.7% who were still living at home 12 years ago1.


With the increase in housing prices, rent, student debt, and overall affordability, millennials have to start thinking of other ways to purchase a home. Millennials today live in a much more varied range of household types such as: living with roommates, an unmarried partner and as we’re seeing, moving back in with their parents.


According to a report dubbed the “2019 Bank of Mom and Dad Report” – parents lent more than $47 billion to their home buying children in 2018. Believe it or not, this makes Mom and Dad the seventh-largest lender in the nation2.


Potentially building wealth early.


Helping family members buy a home earlier than they might on their own can be a smart long-term strategy. An analysis of Panel Study of Income Dynamics (PSID) by Urban Institute suggests that buying a home earlier in life is key to building housing wealth:

“Those who bought their first home between ages 25 and 34 have the greatest housing wealth by their sixties.”


“Those who bought their houses later have significantly lower housing wealth. Ten years of appreciation alone can make a big difference.”


How we can help.


We offer a variety of specialty mortgage product that helps relatives buy together. Our financing does not require that all related co-buyers live in the home. And what’s really special is our financing is available under and over the conforming loan amount, up to $3 million.4 This product not only covers the jumbo market but also for the conventional markets and everything else in between.


Let us help you get started because it’s not just a loan – it’s an investment in your future.  Please know we can craft a mortgage solution that works for you, your family and your budget.  We can help craft just the right solution for you.


1Business Insider

2The Mortgage Report

3Apartment List

4Mortgage Loans

This is not a commitment to lend. Programs available to qualified borrowers. Subject to credit approval, underwriting approval, and lender terms and conditions. Program terms available may be based on the state or county in which the financed property is located. Programs subject to change without notice. Additional restrictions may apply.

While Opes Advisors, a division of Flagstar Bank, Member FDIC, uses all reasonable efforts to ensure that this information is current, accurate and complete on the date of publication, no representations or warranties are made (express or implied) as to the reliability, accuracy or completeness of such information. Opes Advisors, a division of Flagstar Bank, Member FDIC, therefore, cannot be held liable for any loss arising or indirectly from the use of, or any action taken in reliance on, any information appearing in this. Equal housing lender.