There have been many articles as of late proclaiming that home buying is warming up right along with the spring weather. And indeed it has, at least it has here in Seattle. According to the CEO of John L. Scott Real Estate, who was recently featured in the Seattle PI, “We are seeing a frenzied market in the Puget Sound region, especially in the more affordable and mid-price ranges, with an increase in sales activity in the high end.” That, perhaps fueled by the observation that home prices are no longer free-falling, along with historically low interest rates, makes this a very compelling time to purchase a first home. However, many potential buyers are finding it very difficult to amass the requisite down payment. But there are ways to work around this barrier to entry… and that is taking a piggy back loan from the bank of mom and dad. To learn more about this creative method of financing, I suggest you read a recent article in the Journal of Financial Planning called “Housing: A Potentially Active Player in Client Wealth Strategies.” The author, Ed McCarthy, CFP®, does an excellent job explaining how intra-family loans are a way that parents can help their adult children finance a home in higher-priced real estate markets.