Give the down payment as a gift. One of the most common ways parents help their children purchase a home is by contributing to their down payment. As a parent, you have two main options: loan the money or gift it outright. If you loan the money, it creates a formal debt that could trigger interest income taxes for you (as the lender) and potential repayment obligations for your child. Gifting is often simpler and more tax-efficient—under current IRS rules for 2026, you can gift up to $19,000 per parent (or $38,000 total if married and splitting the gift) to each recipient tax-free without dipping into your lifetime exemption. For example, both parents could gift $19,000 each to their child (and another $19,000 each to the child’s spouse if buying together), totaling $76,000 tax-free to help cover a 20% down payment on a $300,000 Jacksonville home. This avoids any gift tax reporting for amounts within limits and lets your child use the funds immediately without repayment pressure.

Be a co-owner with your kid… Some lenders allow parents to co-buy a home with their child and structure equity ownership as desired (e.g., you own 60%, your child owns 40%), which determines how proceeds are split upon sale. This works well if the long-term goal is for your child to eventually buy you out or inherit full ownership—perhaps through a quitclaim deed or refinancing once they qualify independently. In Florida, this can also help with mortgage qualification if your income/credit boosts approval, and it lets you retain partial control or equity growth while your child builds homeownership experience in a market like Jacksonville’s.

…or buy a house on your own and rent it to your child. If your child doesn’t yet qualify for a mortgage (e.g., due to credit history, debt-to-income ratio, or limited savings), you can purchase the home solely in your name and rent it to them at a fair market rate. This gives them time to improve credit, save for a future down payment, and build rental history—while you benefit from rental income (potentially offsetting mortgage costs) and property appreciation. In Jacksonville, where starter homes or townhomes average $280,000–$350,000, this approach provides stability and a path to eventual ownership, with the option for your child to buy it later via a family sale or refinance.

Need more parent tips? Give us a call! Kevin and Jennifer Hanley, REALTORS The Hanley Home Team of Keller Williams Realty Atlantic Partners Southside 904-515-2479 www.HanleyHomeTeam.comde 904-515-2479 HanleyHomeTeam.com Kevin Hanley, Loan Officer, Texana Bank NMLS #2639641 https://mortgage.texanabank.com/loan-officer/kevin-hanley/