Must I Live with My Parents while saving for a Down Payment on a House?


  • A principal amount of more than $100,000 could be required for the typical house buyer with an average purchase price of $535,800 by the end of 2022.
  • It might be challenging to save much more money to be eligible for the most affordable mortgage.
  • Living with parents might simplify saving because housing costs are lower, but before you move, you need to think about things like how soon you’d be cohabiting.

In the US, housing has gotten incredibly costly. The final quarter of 2022 saw an average sales price of $535,800 for homes, according to the Federal Reserve Bank in St. Louis. This indicates that you would require $107,160 to save the necessary 20% down payment on a home to obtain an affordable mortgage without paying additional fees for private mortgage insurance. Without drastically reducing prices, saving up so much cash could seem unattainable. And for some people, relocating with their parents is one method to do this. You can transfer the extra money you were investing in housing into such a bank account for your deposit if your family will let you live with them for free or for a small amount of rent.

There are a few crucial factors to take into account, though, before you do that.

How lengthy will the agreement be in effect?

One of the initial things to consider is how long you will be living with your parents before you obtain the down payment required to purchase your own property. You and your parents can determine if this is a situation you’re all happy with by looking at the timeframe. If you moved in with your parents, you should create a budget depending on your current mortgage payment. Calculate the years (or months) until you receive the required down payment with this new budget. You may talk openly to your parents about how long you’ll need the aid now that you have this knowledge.

Is everyone in agreement on the most critical issues?

Ensure everyone is on board with the terms of cohabitation if you’re contemplating moving in with your parents. You, your parents, and other family members like your spouse or children are included.

To avoid unpleasant shocks, consider every area of everyday life and discuss such topics. Who will, for instance, prepare meals, charge items to their credit cards, or clean up afterward? Will you reside in your room, or will everyone share one space? When you live together, would the grandparents assist out with the kids, and are they willing to put up with any mess your children could make? What impact will pets have? Will you be required to return home by a specific time? More of these problems need to be resolved the more individuals you bring into your parent’s house and the longer it has been since you resided with your parents.

Since you have different expectations for cohabitation, you don’t want to endanger your connection with your parents, your mate, or anybody else in your family. Thus, be confident that everyone is on board with your ideas. By taking care of these difficulties, you can ensure that living in is the best option to help you realize your dream of homeownership without upsetting your family life.