A new strategy has emerged for millennials looking to gain an advantage when competing to purchase their first home - having their parents take out a HELOC, paying cash for the new home, then refinancing and paying the parents loan off.
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Millennials’ New Weapon in Bidding Wars: A Parent’s Home Equity
The strategy is also evidence of how difficult it is for millennials getting into the housing market for starter homes, where competition is the fiercest. Even those with high-paying jobs and hefty down payments are losing out, particularly in cities with strong job markets for young people, such as Washington, Boston and Seattle, said Nela Richardson, Redfin's chief economist.
