Parents Helping Bridge Housing Gap
Nearly 6 in 10 parents are stepping in, often contributing $25K to $100K+ to cover down payments, closing costs or help buyers qualify in a tight market.
COLUMBIA, Mo. — The Bank of Mom & Dad is playing an increasingly powerful role in the next generation's path to homeownership. About 6 in 10 parents (59%) have provided or plan to provide financial assistance to help their child buy a home, according to a new survey released today by the VA lender Veterans United Home Loans.
The survey highlights a growing trend: families stepping in to help overcome affordability challenges in today's housing market. The findings point to a housing landscape where many parents see financial support not just as generous, but increasingly necessary.
"Today's affordability challenges are making it harder for many younger buyers to get a foothold in the housing market," said Chris Birk, vice president of mortgage insight at Veterans United. "For some families, that means stepping in where they can to help bridge gaps around upfront costs or qualification hurdles, even if it means stretching their own finances or making sacrifices elsewhere."
Down payments top the list
Helping with a down payment is the most common reason parents step in, cited by 43% of respondents. Another 37% said they want to help their child qualify for a mortgage, while 33% pointed to covering closing costs.
The results underscore two of the biggest barriers to homeownership: saving enough cash upfront and meeting lending requirements. But many parents are also thinking long term. A third (33%) said they want to help their child build equity and long-term wealth, while 27% aim to reduce monthly payments. One-quarter (25%) said they want to help their child purchase a home in a better neighborhood or school district.
How parents are providing support
Parents are using a wide range of strategies to support their children, with direct financial contributions leading the way:
- 33% have provided or plan to provide a down payment contribution
- 30% are gifting cash
- 30% are paying off debt to improve buying readiness
- 27% are assisting with closing costs
- 27% are allowing children to live at home to save
- 25% are covering furnishings or home improvements
- 23% are paying moving expenses
In many cases, that assistance comes with no strings attached. Among parents who have helped or plan to help, 57% say the support is a gift, while 20% say it is a loan and 23% describe it as a combination of both.
Big dollars, bigger commitments
The financial stakes are often significant. Thirty percent of parents say they have contributed or expect to contribute between $25,000 and $49,999, while 23% plan to give between $50,000 and $99,999. Another 12% expect to contribute between $100,000 and $199,999, with smaller shares planning even larger amounts.
To fund that support, parents are tapping a variety of resources:
- 65% are using checking or cash accounts
- 50% are drawing from investment accounts
- 35% are leveraging home equity
- 32% are using retirement accounts
- 27% are relying on inheritance or trust funds
Some parents are taking an even more direct role in the homebuying process. Nearly 1 in 5 (18%) have co-signed or plan to co-sign a mortgage. Another 17% have purchased or plan to purchase a home outright for their child, and the same share have provided or plan to provide a private loan.
"At the end of the day, this is about families working together to navigate a challenging market," Birk said. "For parents who are in a position to help, it can be a powerful way to open the door to homeownership sooner and set up their children with a stronger financial foundation for the future."
Methodology
On behalf of Veterans United, research and data firm Sparketing conducted an online survey from March 13 to March 24, 2026, of 400 veterans and civilians who intend to buy a home in the next three years.
Source: Veterans United Home Loans
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