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Colorado homebuyers lean on families for non-cash support

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Posted at 8:40 AM, May 26, 2022
and last updated 2022-05-26 10:40:54-04

DENVER — The combination of expensive home prices and high interest rates is hitting Coloradans hard.

Some middle-income earners face the unique challenge of not having the cash or credit score to purchase a home with an affordable monthly payment.

Cleo Lewis, of Central Park Mortgage More, said buyers are leaning on their families for non-cash support.

"Can one of your family members cosign for you?" Lewis said. "It still can be an investment for them as well."

Some extended families are becoming roommates to share monthly housing costs.

Lewis also has seen some potential buyers ask homeowners in their families to take out home equity loans so those can be used towards house down payments.

Diana Lugo took the co-signer route.

"I can prove to him, 'This is going to be a safe investment for you to co-sign with me, because I can promise you that I can make the payments," Lugo said of her conversation with her dad.

Lugo said she even told her dad that she would even take on additional jobs just to ensure that she never misses a payment.

Lewis said these non-traditional methods of purchasing a home can help more buyers achieve their goal of home ownership.

"You may rent so long that now you can't even afford to purchase a home because now you're locked out of the market," Lewis said. "So that locks your family out of the market."

Lugo said she's glad that her family is now locked in.

"It really takes a family to be successful," she said.