When homebuying becomes a family affair

Should parents help children pay for a new home? In the video above from the “Today” show, Barbara Corcoran, founder of the Corcoran Group, gives advice on co-signing a loan or lending money to family members to pay for a home. “If the child is going to the parent [for a loan] in the first place, it’s often because they don’t qualify with a bank,” said Corcoran. “If they don’t qualify with a bank, there’s a reason for that. The parent is assuming a great deal of financial risk.” The easiest thing to do is to ask a parent to co-sign, Corcoran said, though she advises using an attorney, as someone is not emotionally involved in what can sometimes turn out to be a “tricky” situation.