How Homeowners Are Using Equity To Help Their Kids Buy a Home

If you own a home, you may be sitting on a powerful financial tool—home equity. And today, more parents are realizing they can use that equity to give their children something far more valuable than a gift card or inheritance: a head start on homeownership.

Home Prices Have Risen—So Has Your Wealth

Over the years, home values have climbed. That means most homeowners—just by living in their homes—have built up significant equity. In fact, according to Cotality (formerly CoreLogic), the average homeowner with a mortgage now has over $311,000 in equity.

That’s not just a number. It’s leverage. And some parents are using it to help their adult children overcome the affordability hurdles that make buying a home feel impossible.

First-Time Buyers Still Face Big Challenges

Even with steady income and responsible savings habits, first-time homebuyers are struggling. High home prices and rising mortgage rates have made it harder to save for a down payment or qualify for a loan on their own.

But this is where your equity can change everything.

How Parents Are Making Homeownership Possible

Many parents are choosing to tap into their home equity—either through a cash-out refinance, home equity line of credit (HELOC), or gift of funds—to help their children with down payments, closing costs, or co-signing on a loan.

According to Bank of America, 49% of buyers aged 18–26 received financial help from their parents for a down payment. While not all of that came directly from equity, the rising value of real estate has made it easier for parents to say “yes” to helping.

Compare the Market adds another layer to this story:

“Of those who received monetary aid from parents or grandparents to buy a house, 45% said they would not have been able to purchase a home without that help.”

Turning Home Equity Into Legacy

Using your home equity to help your kids isn’t just a financial decision. It’s a generational gift—one that helps your children begin building wealth earlier and with more confidence.

When you help your child buy their first home, you’re not just giving them money. You’re giving them stability, opportunity, and the pride of saying, “We got the house.”

So, Is This the Right Move for You?

Not every situation is the same. Using equity to help a family member should be done thoughtfully—with guidance from a trusted mortgage expert and financial advisor.

But here’s the key question:

If helping your kids buy a home was more possible than you thought, would you want to explore the option?

Let’s Talk About It

At Karbon Financial, we’ve helped dozens of families create smart strategies for using home equity to empower the next generation of homeowners. If you’re curious about how this could work for your family, let’s connect and explore your options.