Is multigenerational housing for you?
Multigenerational housing is when at least three generations are living in the same household. According to the Pew Research Center, there has been a steady increase in the number of people living in multigenerational households since the 1970s. Here are a few of the reasons why people choose this type of housing.
Many people are able to save more money.
When you choose multigenerational housing, you are able to split monthly payments into smaller portions. However your household decides to divide the monthly expenses that come with owning the home, there is one thing that’s guaranteed — not one single person is going to be responsible for everything. If you were to go out and buy a home on your own, you would solely be responsible for your mortgage payments and utilities. By choosing to live in a multigenerational household, you would be splitting those payments yourself and anyone else living under the same roof — children, grandchildren, parents, etc.
Splitting up payments allows you to have the benefits that come with owning a home without the daunting responsibility of having to pay an entire mortgage payment by yourself every month. When you spend less of your paycheck on monthly expenses, there is more left over for you to put into savings. Maybe you have a long-term goal of owning your own home one day. Multigenerational housing can help you save for your down payment and future mortgage payments.
It’s easier to finance your home.
By choosing multigenerational housing, you can typically qualify for a mortgage that is higher than what you would be able to afford by yourself. It’s always important to talk to your mortgage lender about your plans for financing. Maybe someone in your household has enough cash for a downpayment — like grandparents — and others are actively in the workforce bringing home money to pay for a mortgage — parents and children. Being able to supply your mortgage lender with as much detail as possible on your household’s financial plan will help find the best mortgage options and solidify your financing.
Everyone shares the home’s equity.
Your home’s equity is the difference between its appraised value and the amount of money that you owe the lender. As your household continues to make payments on the home, its equity will continue to grow. If there is a written agreement between the title holder of the home and the paying residents, everyone will be able to split the equity of the home. For example, if the house was ever to be sold, everyone would be able to get a share of the profits according to the terms of your agreement.
It’s easier to care for your family.
Whether it’s children, parents or grandparents, it’s easier to care for family members when everyone lives under the same roof. In addition to finances, caregiving is the second most common reason that people choose to live in multigenerational housing. It makes it easier for children to care for their parents in their older age, and it’s like having a live-in babysitter.
If you think that multigenerational housing is a good option for your family, the staff at United Housing can help you with everything you need to purchase a home. From financial education classes to loan options to community partnerships, it’s our mission to make sure that everyone who wants to own a home has the ability to do so.