The “Bank of Mom & Dad” has evolved from a casual phrase into a major force in today’s housing market. According to a new survey from Veterans United Home Loans, nearly 6 in 10 parents (59%) have already provided or plan to provide financial assistance to help their child purchase a home. This trend highlights how family support is becoming essential for many young buyers facing high prices, rising interest rates, and strict lending standards.
The online survey, conducted in March 2026 among 400 Veterans, service members, and civilians intending to buy a home within the next three years, reveals a clear generational shift. Parents aren’t just being generous—they’re often stepping in because homeownership feels out of reach without help.
Military Families Lead the Way in Generational Support To Buy A Home
The numbers are even higher in military households. 68% of Veterans and service members say they have helped or plan to help their children buy a home, compared with 49% of civilians. This gap may reflect the strong emphasis on stability and long-term planning often found in military communities, as well as the unique financial challenges many service members and their families face during transitions.
Chris Birk, Vice President of Mortgage Insight at Veterans United, put the findings in context: “Today’s affordability challenges are making it harder for many younger buyers to get a foothold in the housing market. 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.”
Top Reasons Parents Are Stepping In To Buy A Home
When parents decide to help, their motivations center on the biggest barriers young buyers face:
- 43% cite helping with the down payment as the primary reason.
- 37% want to improve their child’s ability to qualify for a mortgage.
- 33% focus on covering closing costs.
Many parents also think beyond the immediate purchase. About one-third (33%) aim to help their child build equity and long-term wealth, while 27% want to reduce monthly mortgage payments. Another 25% hope to enable a purchase in a better neighborhood or school district.
These priorities show that family assistance often serves dual purposes: overcoming short-term hurdles and laying a foundation for financial security.
How Parents Are Providing Help
Families use a variety of practical strategies. The most common forms of support include:
- 33% — Direct down payment contributions
- 30% — Gifting cash
- 30% — Paying off debt to improve credit and buying power
- 27% — Assisting with closing costs
- 27% — Allowing adult children to live at home rent-free to save money
- 25% — Covering furnishings or home improvements
- 23% — Helping with moving expenses
In many cases, the help comes without expectations of repayment. Among parents offering support, 57% describe it as a pure gift, 20% as a loan, and 23% as a combination of both.
The Dollar Amounts Are Significant
The financial commitments are often substantial. Among parents who help:
- 30% contribute or expect to contribute $25,000 – $49,999
- 23% plan to give $50,000 – $99,999
- 12% anticipate $100,000 – $199,999
Smaller percentages report even larger gifts or loans. To fund this support, parents draw from multiple sources:
- 65% — Checking or cash accounts
- 50% — Investment accounts
- 35% — Home equity
- 32% — Retirement accounts
- 27% — Inheritance or trust funds
Some parents take a more hands-on role: 18% have co-signed or plan to co-sign a mortgage, while 17% have purchased (or plan to purchase) a home outright for their child, and another 17% provide a private loan.
Summary
What This Means for the Housing Market
This surge in intergenerational support underscores a broader reality: many young adults need family backing to compete in a challenging market. While the “Bank of Mom & Dad” helps individual families achieve homeownership sooner, it also raises questions about equity for those without such resources.
For parents in a position to help, the decision often feels like an investment in their child’s future stability and wealth-building potential. As Birk noted, “At the end of the day, this is about families working together to navigate a challenging market. 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.”
If you’re a parent considering helping your child buy a home—or a young buyer exploring options with family support—understanding the common approaches and amounts involved can help start an informed conversation. Every family’s situation is different, but the data shows that collaborative strategies are increasingly common and impactful.
Survey methodology note: The findings are based on an online survey of 400 respondents (Veterans, service members, and civilians) conducted March 13–24, 2026, by Sparketing on behalf of Veterans United Home Loans. All respondents indicated intent to buy a home in the next three years.
This trend is likely to continue as long as affordability pressures persist. For many families, working together is becoming the new normal on the path to homeownership.
Are you looking to buy or sell real estate in the South Florida area? We can help! Contact Natasha at Live South Florida Realty, Inc. today! Also, be sure to download the free Florida Home Search App for your smartphone or tablet.
