Buying a home is a goal for many young adults. Whether they are short on savings or are weighed down by student debt, homeownership is out of reach for many 20 and 30-somethings if they don't receive help from parents or other family members. Many parents want to help adult children achieve the dream of homeownership but don't want to complicate family relationships by lending money. Fortunately, there are other ways parents can help their children achieve the milestone of buying a home.

Teach financial responsibility and establish their credit history
The first way to help adult children purchase a new home starts long in advance. Since interest rates and mortgage approvals require a positive credit score, start early by teaching teens to monitor their credit scores and make timely payments. Once your teen has a part-time job, help them review credit card offers and select the one with the best terms. Then, teach them to manage their credit spending and to make payments on time. Educating your children about credit scores and financial responsibility sets them on a solid path toward future homeownership. You will be able to advise them better if you tackle this task before they move out of the family home.

Let them move back home
For young adults on starting salaries, rent can eat up a large chunk of their monthly budget, making it impossible to save towards a down payment. If adult children can live with their parents rent-free, they can drastically speed up the savings process. However, having two generations of adults living under one roof can be tricky, so you will need to set ground rules upfront. Have a family meeting and decide who is responsible for utility bills and grocery costs. It is also essential to establish how long everyone will be living together and what amount adult children will put into savings each month. Privacy issues and household chores should also be discussed in advance.

Give the money for a down payment
For parents that are financially able to do so, gifting money to be used as a down payment on a home may be a better option than saving the funds for an inheritance down the road. First, helping an adult child buy a house and seeing their joy may be more emotionally rewarding than leaving the same amount of money to them after death. Plus, gifting the funds when they need it may have a more significant impact than letting them inherit it when they are more financially established. However, this option is not without drawbacks. A sizeable financial gift can cause confusion. Establish upfront the purpose of the money and that neither party expects it to be repaid. You should also clarify whether you, as the parent, will expect a say in the house chosen for purchase. Mortgage lenders will also have concerns about this arrangement and will need to see a paper trail for the funds and a gift letter detailing how and when the money was gifted. If you have questions, contact the team at Andover Bank.

Pay for repairs
First-time homebuyers often choose a fixer-upper that needs work both in the short and long term. Necessary repairs and cosmetic fixes can be budget busters, but they are a good way for parents to lend a financial hand. If you can't, or don't want to, fund the down payment, you might be able to pay for a roof repair, some electrical work, or fresh paint.

Pay for upgrades
While a down payment might be the first and most significant expense when buying a new home, there are plenty of other costs waiting around the corner. First-time homeowners will likely need to purchase everything from appliances to security systems to window blinds. For a little financial help that doubles as a housewarming present, go shopping together for some of these items. Going to various stores together, rather than gifting cash, lets you spend bonding time together during a special period in your life, and it allows you to know how the funds are spent. But tread lightly. Your adult children should feel that they made the selections rather than giving in to your influences.

Let them shop from your house
There's nothing like upgrading two homes for the price of one. Rather than buying new items to furnish your adult child's house, look around your own home for second-hand items you can spare. If your furniture, appliances, or kitchenware are in good working order, but you would like to upgrade, ask your adult child if they would like these items for their new place. Second-hand items might not have the lifespan, or style, of new versions, but they can free up space in a budget for other immediate priorities.

Share your do-it-yourself skills
From painting interior walls to regrouting tile, a new home often comes with a list of do-it-yourself projects. Unfortunately, first-time homeowners often find that work schedules and a lack of know-how put DIY projects out of reach. While the solution might be to keep pushing the project to a later time, first-time homeowners may end up paying someone to complete these tasks. If your adult child needs to hire a painter, landscaper, handyman, or other professional to do jobs, think about whether you have the skills to do them yourself. Do-it-yourself skills usually evolve over years of practice, so lending a hand can help them financially while teaching valuable skills.

Help with moving expenses
Once a home is purchased, moving in can either be time-consuming or expensive. Usually, home buyers will look at their budget and schedule and decide if they should hire a cleaning team, packers, and movers. Moving day is another opportunity for adult parents to help their children, either by paying for professional services or lending a hand. Consider hiring a cleaning service to do a move-in clean of the new home or a move-out clean of the previous residence. You could also either hire a moving and packing service or offer to help out with the tasks. If your adult child will pack their belongings themselves, head to the hardware store to purchase new boxes, bubble wrap, and tape. The supplies might not be expensive, but they will be appreciated for making the moving process smoother.

Millennials and Generation Z are finding that the dream of homeownership is more challenging to achieve than it has been for any previous generation. Often, people in their 20s and 30s find that buying a home is out of reach or that it stretches their budget farther than they wish. In big and small ways, help from parents can be the difference between buying a home and renting for a few more years. The trick is to find ways to help that allow both generations to feel comfortable.