In OneLaw’s April newsletter, featured professional Patrick Collins – Originating Sales Manager at Cross Country Mortgage – provides advice on how parents can help their children buy a home. We also profile the Federation for Children with Special Needs and remind you that we help clients with estate planning matters.
Read the full April 2026 newsletter HERE.
A text version is below.
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April 2026
Better late than never for our April newsletter.
This month, our featured professional Patrick Collins – Originating Sales Manager at Cross Country Mortgage – provides advice on how parents can help their children buy a home.
We also profile the Federation for Children with Special Needs and remind you that we help clients with estate planning matters.
As always, OneLaw is dedicated to serving the personal legal needs of families and individuals across a variety of practice areas. Let us know how we can help you. Visit our website (https://www.one-law.us) or give us a call at 617-831-4355.
Peter A. Hahn, Esq. Principal Attorney
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How Parents Can Help Their Children Purchase A Home
by Patrick Collins, Featured Professional
Helping an adult child purchase a home is one of the most meaningful ways parents can provide financial and emotional support—yet it requires careful planning to ensure it benefits everyone involved. With home prices and interest rates remaining elevated, many first-time buyers need assistance overcoming the two biggest hurdles: saving for a down payment and qualifying for financing. Parents can play a pivotal role in both areas, but the approach should be thoughtful, structured, and well-documented.
One of the most common ways parents help is through gifted funds for a down payment. Most mortgage programs allow gifts from immediate family members, and this can dramatically reduce the child’s loan amount and monthly payment. However, lenders require a clear paper trail, including a gift letter stating that the funds are not a loan and do not need to be repaid. Parents should also be mindful of IRS gift tax guidelines—while most families won’t owe taxes due to lifetime exemptions, proper reporting may still be required. Gifted funds fall into two camps, either within the Annual Gift Tax exclusion range ($19,000 per parent or $38,000 per married couple) or counted against the Lifetime Estate Gift tax exemption of 15 million. If the latter, parents will need to be mindful to file a Form 709 maintaining proper tracking of the lifetime exemption.
Another option is serving as a co-borrower or co-signer on the mortgage. This can strengthen the application by adding income or improving creditworthiness, helping the child qualify for a larger loan or better interest rate. That said, this route carries more risk: the parent is legally responsible for the mortgage, and the debt will appear on their credit report, potentially impacting their own borrowing capacity. It’s important to evaluate long-term implications before choosing this path.
Parents may also consider purchasing the property outright or jointly. In some cases, parents buy the home in their own name and allow the child to live there, either rent-free or with an informal payment arrangement. Others structure it as a co-ownership, where both parties are on title. While this can be effective, it introduces considerations around taxes, insurance, and future equity distribution. A clear agreement—ideally in writing—helps avoid misunderstandings down the road.
For families with more complex financial strategies, trusts or family loans can be used. A parent might lend money at a low (but IRS-compliant) interest rate, creating a more flexible repayment structure than traditional financing. This approach can preserve family wealth while still helping the child build equity. Working with a financial advisor or real estate attorney is key to structuring these arrangements properly.
Beyond financial contributions, parents can add value by helping their child prepare for homeownership. This includes reviewing credit, budgeting for monthly expenses, and understanding the full cost of ownership—property taxes, insurance, maintenance, and unexpected repairs. Encouraging a mortgage pre-approval early in the process can also position the child as a stronger, more competitive buyer.
Ultimately, the goal is to strike a balance between support and independence. The best outcomes occur when expectations are clearly defined, risks are understood, and all parties communicate openly. By taking a proactive and informed approach, parents can help their adult children achieve homeownership while protecting their own financial well-being.
Patrick Collins is Originating Sales Manager of the Marquis Team at Cross Country Mortgage (https://crosscountrymortgage.com/). He is based in Lexington and works with clients in Massachusetts, across New England, and throughout the country.
This article is not a substitute for legal advice.
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FEDERATION FOR CHILDREN WITH SPECIAL NEEDS
The Federation for Children with Special Needs provides information, support, and assistance to parents of children with disabilities, their professional partners, and their communities.
FCSN is committed to listening to and learning from families, and encouraging full participation in community life by all people, especially those with disabilities. Most Federation staff members are parents or family members of children with disabilities and people with disabilities.
For more information, visit their website at Federation for Children with Special Needs (https://fcsn.org/).
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ESTATE PLANNING
Time to update your estate plan? Have you been meaning to draft your will? In need of a health care proxy or power of attorney? Or a trust to manage your assets or for someone with special needs? Contact OneLaw for a consultation.
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OneLaw represents clients in education, estate planning, residential real estate, civil rights, disability, family law, criminal and victim rights, discrimination, special needs planning, guardianship, Juvenile Court, child welfare, probate administration, Title IX, HPO/RO, and related matters.