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Does The Bank of Mom and Dad Help Homeownership?
Friday, April 29, 2016
Does a financial boost from mom and dad make it more likely a young person will buy a home? It depends. And that might change.
Those statements are more or less the bottom line from a working paper prepared by three University of Southern California professors, Dowell Myers, Gary Painter, and Julie Zissimopoulos that is part of a larger study on parental financial transfers to adult children. The three based their work on two data sets, Panel Study of Income Dynamics (PSID) and the Health and Retirement Survey (HRS), that provide information on parental financial transfers, adult children's transitions into homeownership, and a variety of child and parent demographic, social, and financial characteristics. The working paper is profiled by Myers and Fannie Mae's Patrick Simmons on the FM Commentary blog
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