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7 Pros and Cons of Buying a Home With Your Parents

Ryan FitzgeraldRyan Fitzgerald
Jul 30, 2025 8 min read
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7 Pros and Cons of Buying a Home With Your Parents
Chapters
01
Pro: Enhanced Financial Power and Split Finances
02
Pro: Built-in Family Support and Proximity 
03
Pro: Access to More Mortgage Options and Better Terms 
04
Pro: Shared Household Responsibilities and Expertise
05
Con: Loss of Privacy and Independence 
06
Con: Increased Caregiving Responsibilities and Role Reversals 
07
Con: Financial Risks and Legal Complications 

Buying a Home With Your Parents 

Are you thinking about buying a home with your parents? Here are seven key pros and cons to consider. 

Buying a home with your parents as a fresh college graduate, young professional, or older adult is similar to a traditional home sale. However, mixing family and finances can bring a few extra factors to consider. 

Depending on your relationship with your parents, buying a home with them can be a great financial choice. However, both parties should keep their feelings and generational differences aside to ensure everyone is treated fairly in the situation. 

Once the kids are grown and out of the house, many parents sell their family home to their children. No laws state it is illegal to sell your house to a family member, as it can be an intelligent strategy for the parents and child. However, buying a home with your parents is slightly different. 

Rising inflation, student debt, stagnant wages, and many other factors make it increasingly difficult for young adults to purchase property independently. In 2025, the median age for first-time homebuyers is 38, a historic high. 

Many young adults have turned to their parents for help owning real estate. Buying a home with your parents is a decision that will impact your family's financial future and daily life for years to come.

Keep reading to learn all about the pros and cons of buying a home with your parents.

1. Pro: Enhanced Financial Power and Split Finances

If you are considering buying a home with your parents, you'd combine your expenses to pay for the home. This combination of their finances and yours may enable you to purchase a larger, more comfortable home. 

With two incomes and potentially two sets of savings, you may qualify for out-of-reach properties. Monthly expenses like mortgage payments, property taxes, utilities, and maintenance costs can be divided, making homeownership more affordable for everyone involved.

Elderly parents are more likely to have considerable savings or income, which would help tremendously when splitting the housing costs. These housing costs include the down payment, mortgage, property taxes, and insurance. Additionally, all of the decor and furniture can be passed down or made easier to afford.

This financial partnership often allows families to target better neighborhoods with superior schools, lower crime rates, and stronger property value appreciation potential.

In Raleigh's market, where median home prices continue climbing, this collective buying power can be the difference between settling for a starter home and purchasing your long-term dream property.

family of four adults living together

2. Pro: Built-in Family Support and Proximity 

Living with or near your parents provides invaluable emotional and practical support. For young families, having grandparents nearby means built-in childcare support, which can save thousands of dollars annually in Raleigh's expensive childcare market. 

This arrangement also strengthens family bonds and ensures aging parents aren't isolated. This built-in support system becomes even more valuable in a city like Raleigh, where many residents relocate for career opportunities and may lack extended family nearby.

As co-owners of the property, the parents are also responsible for household chores, maintenance, and repairs. Household maintenance and repairs can prove costly, so any extra assistance can be extremely valuable to a homeowner. 

man living with parents and sitting with them at the dinner table

3. Pro: Access to More Mortgage Options and Better Terms 

Lenders often view multigenerational applications favorably, mainly when they include established credit histories and stable employment records. Parents typically bring decades of credit history and potentially higher credit scores, while adult children contribute current income and future earning potential.

Some loan programs specifically cater to multigenerational buyers, and having multiple qualified borrowers can help secure better interest rates. Additionally, if your parents contribute cash from a previous home sale or retirement savings, this can significantly reduce the loan amount needed and potentially eliminate private mortgage insurance requirements.

Many people who buy a home with their parents do so as co-borrowers. Co-borrowing means that more than one person is listed on the mortgage application. The credit, income, and assets listed on the application are used to assess qualification for a home loan. 

When buying a home with a parent, you will have more loan options than during a typical home sale. 

  • Fannie Mae HomeReady Loan: This loan is ideal for lower-income borrowers. It allows you to add additional housemates' income for approval and provides 3% coverage of closing costs for those who haven't purchased a home in the last three years.
  • Conforming Loans: A standard conforming loan is acceptable if your income eligibility and down payment are not a concern. This buyer must put down at least 20% and will not have to pay for private mortgage insurance (PMI).
  • FHA Loans: This type of loan allows down payments starting at 3.5% with a 580 or higher credit score.
  • USDA Loans: USDA loans are used if the property is in a rural area or a small town. Only a single-family home can be purchased, and a minimum credit score of 640 is required.
  • VA Home Loans: If at least one member of the family is a veteran, active-duty service member, or surviving spouse, then you may qualify for this loan. 

4. Pro: Shared Household Responsibilities and Expertise

Living with your parents naturally distributes household responsibilities among more people. Your parents may excel at cooking, gardening, or home maintenance, while you might handle technology, scheduling, or financial management. This division of labor can improve everyone's quality of life and reduce individual stress levels.

Parents often bring valuable life experience and practical skills that can save money on home repairs, meal planning, and general household management. Their established routines and organizational systems can provide stability.

5. Con: Loss of Privacy and Independence 

While some may see living with their parents or owning a home with their parents as an advantage, others may see it as a loss of privacy. Consider how close proximity may impact your family's relationship. 

Adult children may feel they're reverting to childhood dynamics, while parents might struggle with their adult children's lifestyle choices or parenting decisions. Personal space becomes limited, and spontaneous decisions about guests, schedules, or home modifications require family consultation.

This privacy loss extends beyond physical space to financial privacy, as shared ownership typically means shared knowledge of income, spending habits, and economic decisions. Couples may struggle to maintain intimate relationships and make independent choices about their living space and daily routines.

In addition, you are bound to disagree at some point. From generational differences to conflicting expectations, disagreements may arise. You should consider this and prepare if you do buy a home with your parents. 

young adult taking a picture with older parents while sitting on the couch

6. Con: Increased Caregiving Responsibilities and Role Reversals 

Adult children in shared living arrangements often become default caregivers as parents age. While this can be rewarding, it also represents a significant responsibility that can impact career advancement, personal relationships, and lifestyle choices. Medical appointments, medication management, and mobility assistance may become regular obligations.

The emotional toll of watching parents' health decline while living in the same home can be substantial. Additionally, if parents develop severe health conditions requiring professional care, the shared property may need expensive modifications.

young adult holding hands with parent

7. Con: Financial Risks and Legal Complications 

There are several financial risks when buying a home with your parents. When co-signing a mortgage, you are both responsible for the loan, and your credit score can be impacted if the borrower defaults. 

The arrangement becomes complicated if one party wants to sell their share, cannot contribute to mortgage payments, or faces financial difficulties. Estate planning becomes more complex as the property's ownership structure affects inheritance and tax implications.

Legal issues can arise regarding property improvements, refinancing decisions, or deteriorating family relationships. If parents divorce, become incapacitated, or face creditor issues, these problems directly impact the shared property.

Additionally, having multiple owners can complicate and delay the process if the home needs to be sold quickly due to job relocation or a financial emergency.

young adult daughter with older parents outside

Methodology

Data was sourced from the National Association of Realtors and TurboTax to determine everything you need to know about buying a home with your parents.

FAQs 

Is buying a house with a parent a good idea?

Buying a home with your parents can provide certain financial and emotional benefits, such as tax deductions and emotional support. However, whether or not this is a good idea for you will highly depend on your relationship with your parents.

Is it a good idea to put your name on your parents' house?

Transferring your parents' home into your name can make you subject to capital gains tax and responsible for any increase in the house's value. 

Do I have to pay taxes if my mom gives me a house?

If a parent gives their child a home, there is no income tax for the children.  However, the child may have to pay capital gains tax if they sell the property later. 

Is it better to gift or inherit a house?

From a tax perspective, it is more advantageous to inherit a home rather than be gifted a home before the owner's death. If you inherit a property, you can sell it, keep it, or use it as a rental property. Additionally, inheritances are not considered income for federal tax purposes. 

Is it a good idea to buy a house with your adult child?

Co-owning a home with your adult child can make a lot of sense on paper, and it is a great way to provide financial stability for your child. Make sure to consider the pros and cons before making a decision. 

Buying a Home With Your Parents - The Bottom Line

Buying a home with your parents might not be right for every family, but it can be an excellent solution for those who carefully plan and openly communicate expectations, responsibilities, and long-term goals.

Before proceeding, consider conducting a trial living arrangement, consulting with financial advisors and real estate attorneys, and developing clear agreements about household rules and monetary contributions.

As you debate whether or not this is the best decision, consider these questions:

  • Will this be a long-term or temporary situation?
  • Whose name(s) will be listed in the home's title?
  • What are the living arrangements?
  • Who is responsible for home maintenance and repairs?
  • What happens if/when one party wants to leave the agreement?
  • How will home equity be shared?
  • Whose credit and income will be used to qualify for a home loan?
  • How will we pay the mortgage payments?

In today's real estate market, it can be hard to afford a home alone as a young adult. Buying a home with your parents can be the solution you've been looking for as an aspiring homeowner

Are you moving to Raleigh and ready to explore homeownership in the area? Contact our Real Estate Specialists today to discuss your family's unique needs and discover properties in one of Raleigh's best neighborhoods that can bring everyone together under one roof. 

Our experienced agents can help you find properties that accommodate multiple generations comfortably while ensuring all parties understand their rights and responsibilities throughout the purchasing process.

WRITTEN BY
Ryan Fitzgerald
Ryan Fitzgerald
Realtor

Ryan Fitzgerald is a top Realtor®, founder and owner of Raleigh Realty, one of the Triangle’s fastest-growing and most innovative real estate brokerages. Driven by a mission to be the best—not the biggest—brokerage in Raleigh, Ryan has built Raleigh Realty into a firm known for its cutting-edge marketing, high-performing agents, and culture rooted in collaboration, growth, and excellence.

Raleigh Realty

Under Ryan’s leadership, Raleigh Realty has become a top boutique brokerage in Raleigh-Durham, serving clients across Wake County and the surrounding areas. Raleigh Realty stands apart for its:

  • Top-Tier Agents – Every Realtor on the team is hand-selected for their skill, professionalism, and client-first approach. Raleigh Realty isn’t about quantity—it’s about quality.

  • Award-Winning Website – RaleighRealty.com is consistently ranked among the best real estate websites with incredible user experience, cutting-edge IDX technology, and hyper-local guides that help buyers and sellers navigate the market.

  • Inbound Lead Generation – With a strong focus on SEO and digital marketing, the brokerage generates a steady flow of organic leads, giving agents the opportunity to grow thriving businesses.

  • Supportive Culture – Ryan emphasizes mentorship, accountability, and autonomy—no micromanaging, just the right systems and tools for agents to succeed.

  • Community Focus – From neighborhood spotlights to relocation guides, Raleigh Realty is committed to being a resource for both buyers and sellers as they make one of life’s biggest decisions.

The firm continues to expand its reach, with the goal of 100 agents and $1 billion in annual sales volume by 2030—all while staying true to its boutique, client-centered values.

Awards & Recognition

Ryan already has notable public credentials and prestige:

  • He has been featured in outlets such as Forbes, Wall Street Journal, U.S. News, among others (as mentioned on the site).

  • Realtor Magazine named him a “Top 30 Under 30” in the country (as noted on his Raleigh Realty page).

  • Raleigh Realty is widely acknowledged in the local real estate community for its digital prowess and thought leadership.

  • The company is consistently ranked among the top real estate firms in Raleigh and is known for having one of the highest-traffic real estate websites in the region.

Community Involvement & Giving Back

Ryan’s leadership extends far beyond the closing table. He has built Raleigh Realty to be a company that actively gives back to the community and invests in making Raleigh a better place to live.

  • The Green Chair Project – Ryan and Raleigh Realty proudly support The Green Chair Project, a local nonprofit that provides essential furnishings and household items to families transitioning out of homelessness, crisis, or disaster. By partnering with this organization, Ryan helps ensure families have the comfort and dignity of a furnished home.

  • Food Donations & Drives – Raleigh Realty regularly organizes and contributes to food donation efforts, partnering with local pantries and organizations to help fight food insecurity across Wake County. These efforts bring agents, clients, and neighbors together to support those in need.

  • Local Events & Client Appreciation – Raleigh Realty hosts family-friendly gatherings such as pumpkin patch outings, coffee + donut socials, and seasonal celebrations designed to strengthen neighborhood bonds.

  • Supporting Schools & Youth Programs – Ryan partners with local schools and youth organizations to provide resources, sponsorships, and mentorship opportunities, ensuring that the next generation has access to growth and guidance.

  • Small Business Advocacy – Raleigh Realty proudly highlights and partners with local small businesses, amplifying their visibility and reinforcing Raleigh’s reputation as a vibrant place to live and work.

For Ryan, success is measured not just in sales, but in the lasting relationships and community impact Raleigh Realty leaves behind.

AgentLoft – Powering the Next Generation of Realtors

Ryan is also the visionary behind AgentLoft, a SaaS platform designed to help Realtors nationwide build their brand and generate leads. AgentLoft websites combine IDX technology, SEO expertise, and AI integration to give agents the competitive edge they need.

Personal Mission

As a proud father to his daughter Emma, Ryan’s mission is bigger than business. He’s dedicated to building a brokerage and a platform that create opportunity and stability for families, clients, and agents alike. His approach blends entrepreneurship with empathy—ensuring that Raleigh Realty continues to grow not just in sales volume, but in reputation, trust, and impact.


👉 Whether you’re buying or selling a home, or you’re a Realtor looking for the right brokerage to grow your business, Raleigh Realty—under Ryan Fitzgerald’s leadership—offers the expertise, technology, and community-minded culture to help you succeed.

Chapters
01
Pro: Enhanced Financial Power and Split Finances
02
Pro: Built-in Family Support and Proximity 
03
Pro: Access to More Mortgage Options and Better Terms 
04
Pro: Shared Household Responsibilities and Expertise
05
Con: Loss of Privacy and Independence 
06
Con: Increased Caregiving Responsibilities and Role Reversals 
07
Con: Financial Risks and Legal Complications 

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