The Bad PlaceUS Top News and Analysis | A 31-year-old used a HELOC to compete with all-cash offers on a house. 3 lenders to do the same
AI generated summary, Read the full article for complete information.
A 31‑year‑old couple in Lancaster, Pennsylvania finally bought their first home by using a family‑member’s home‑equity line of credit (HELOC) to make an all‑cash offer that beat cash‑only competitors. After five unsuccessful bids, they secured a $200,000 HELOC from a relative, added their $45,000 down‑payment savings, and offered cash for a house, closing the deal in about four to five months. They later refinanced with a $250,000 fixed‑rate home‑equity loan to repay the relative’s HELOC. The story highlights how millennials and Gen Z buyers increasingly rely on family assistance—27 % of millennials and 38 % of Gen Z reported parental co‑ownership, co‑buying, or co‑signing—while the average age of first‑time buyers has risen to 40. It also outlines the pros (stronger offers, larger down payments) and cons (personal liability, potential family strain) of using a family‑member’s HELOC, and reviews several lenders’ HELOC options, such as TD Bank, Bank of America, and CMG Financial, noting key features like maximum loan amounts, interest rates, fees, and closing speed.
Read more: https://www.cnbc.com/select/heloc-helped-millennial-compete-with-all-cash-offers/