Emily is 35 years old. She has a good job. She pays her bills. She’s done most of the things previous generations were told would lead to homeownership.
She’s still struggling to buy her first home.
She’s not unusual. Home prices remain elevated, mortgage rates have settled in the mid-6% range,¹ and for many young adults the down payment alone can feel out of reach. The median age of a first-time homebuyer in the United States is now 35, a reflection of how much harder that first purchase has become.²
That’s why more parents and grandparents are asking a question they never expected to ask:
Should we help them buy their first home?
For many families, the answer is yes. The next question is how.
Four Ways Families Lend a Hand
The Outright Gift. Under 2026 IRS figures, you can give up to $19,000 per recipient without filing a gift tax return, $38,000 from a married couple.³ Parents can also gift to a child’s spouse. Even larger gifts are often less complicated than people assume. In most cases, the result is paperwork rather than tax.
The Gift of Equity. If you own a property and sell it to a child below market value, the difference generally counts as a gift. This approach works well when a home is already in the family and the goal is helping the next generation establish roots while keeping the asset close.
The Co-Signed Mortgage. Co-signing can improve a child’s ability to qualify for financing — but it also makes the debt yours in the eyes of the lender, which can affect your own borrowing capacity and financial flexibility.
The Family Loan. A properly documented family loan can create a meaningful win-win. The child has skin in the game. Payments may be more manageable than traditional financing. And the interest stays within the family rather than flowing entirely to a bank. When structured correctly, it also provides a framework that’s easier to apply consistently if similar needs arise with other family members down the road.
Any of these can work. Each carries different implications for taxes, cash flow, estate planning, and family relationships — and each requires specific steps to remain compliant with tax and lending rules.
The question isn’t which approach is objectively better. It’s which one best fits your family’s circumstances and long-term goals.
But in our experience, the technical details are usually not the hardest part.
The Real Challenge
The harder questions tend to be relational.
Will this feel fair to your other children? Does it create expectations you’ll need to meet again? Will it strengthen family relationships — or unintentionally strain them?
These are often the questions families wrestle with long after the paperwork is signed.
As a Firm-to-Family®, we believe those questions matter just as much as the financial ones. A traditional advisor may focus primarily on the numbers. We care about the numbers too — but we also recognize that financial decisions happen inside families, and families are more important than spreadsheets.
Consider a couple whose granddaughter has finally found a place she can picture herself in, if only the down payment weren’t so far off. Their first instinct is to write a check. It’s a generous impulse, and it could certainly work.
But as they talk through the decision, other considerations emerge. They have other grandchildren. They want to be fair. They don’t want to create expectations they may not be able to meet later. And they don’t want to draw too heavily from the reserves they depend on for their own future.
A documented family loan at a modest rate changes the shape of the whole conversation. Their granddaughter still has skin in the game. Her monthly payment is more manageable than traditional financing. The grandparents provide meaningful help without turning the arrangement into an outright gift. And if other grandchildren need help in the future, they now have a framework they can apply consistently.
The help is just as real. It’s simply built to last.
Where Family and Plan Meet
Helping a child or grandchild buy a first home may be one of the most meaningful financial decisions you’ll ever make — not because of the house itself, but because of what it represents.
A home is often where careers take root, marriages begin, children are raised, and family memories are made. Helping someone take that step can have an impact that lasts for generations.
At Gatewood, we help families think through both sides of the equation. We evaluate the financial implications, coordinate with attorneys and accountants when appropriate, and help navigate the relationship dynamics that often matter most.
Generosity is usually the easy part. Shaping it well is where a plan earns its keep.
If this is on your mind, let’s map out an approach that fits both your family and your plan.
Sources & References
- Freddie Mac. “Primary Mortgage Market Survey (PMMS).” June 4, 2026. https://www.freddiemac.com/pmms
- Redfin. “The Typical First-Time Homebuyer Is 35 Years Old.” 2025. https://www.redfin.com/news/median-homebuying-age-2025/
- Internal Revenue Service. “IRS Releases Tax Inflation Adjustments for Tax Year 2026.” Revenue Procedure 2025-32, October 2025. https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill
Important Disclosures:
Content in this material is for general information only and not intended to provide specific advice or recommendations for any individual. Gatewood Wealth Solutions and LPL Financial do not provide legal or tax advice or services.
All investing involves risk including loss of principal. No strategy assures success or protects against loss.
The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual.
This information is not intended to be a substitute for specific individualized tax or legal advice. We suggest that you discuss your specific situation with a qualified tax or legal advisor.
