Would you be willing to foreclose on your own child? It’s one of the important questions to answer before you even think about loaning money to your kids to buy a house.
According to a February 16 article by Craig Guillot at nasdaq.com, “As more young people struggle to qualify for mortgages despite record-low mortgage rates and affordable home prices, some parents have decided to step in and become their child’s mortgage lender.”
If done carefully, such a loan can be a source of income for the parents as well as a leg up for the kids. Guillot offers some excellent advice from Rick and several other sources on ways to prevent lending to your kids from becoming a financial and family disaster.
Read “Is lending to your child worth the risk?” here.
