A recent report from the Federal Housing Administration (FHA) indicates more than 26% of mortgage borrowers, using FHA insured loans, received down payment assistance from relatives. This is an increase from the 22% recorded in 2011.

Difficulty saving for mortgage down payments have been attributed to causes such as student debt, minimal wage growth, and increasing home prices.

FHA reports also show that loans with family assistance are trending lower in the 90 days or more delinquent category than loans without family assistance.

When asked about the potential risk, Sanjiv shared his perspective saying, “I think that family assistance has a higher moral bearing on people when things turn tough in the housing market.” Mr. Das added that people feel more obligated to repay their family. As a leader in the mortgage industry, Caliber believes it’s important to explore options that will make home ownership available to more families throughout the nation.

Read the entire Wall Street Journal article.