How to Buy a Home for Your Parents

homeprarents

It’s fairly common for parents to help their children buy a home. But sometimes, adult children are in a position where they want to help buy a home for their parents.

It may be that the children have been successful and want their parents to have a better home than they do now. Perhaps the current housing no longer meets their needs. Maybe the parents live some distance away and the children wish to have them nearby, butĀ housing costsĀ in the new location are considerably higher than where they live now. Or the parents may need a retirement dwelling but can’t afford to make the move on a fixed income.

Basically, you have three options:

1. Buy a home for them outright and allow them to live there.

2. Assist them in buying a home if they’d have difficulty obtaining a loan by themselves.

3. Buy a home and rent it back to them at an affordable cost.