to show a thriving multigenerational family happy in their home

May 8th, 2025

Multigenerational living is more than just a housing choice—it’s a thoughtful, values-driven lifestyle that brings multiple generations together under one roof. Whether it’s grandparents helping with childcare, adult children supporting aging parents, or families combining resources for long-term stability, this approach offers emotional, financial, and practical advantages that strengthen the entire household.

By sharing living space with the multigenerational living model, families can reduce expenses, provide in-home care, divide household responsibilities, and create a flexible support system rooted in trust and togetherness. More than convenience, this arrangement fosters meaningful connection—where life lessons are passed down, family traditions are preserved, and each generation benefits from the presence and wisdom of the others.

At Freestone Mortgage, we believe your home should reflect your values and be a safe haven for your family. Multigenerational living is a powerful way to align your housing strategy with your goals for security, family, and well-being. It’s not just a trend—it’s a return to what matters most, and we want to partner with you to make this a reality.

Multigenerational living is a thoughtful, intentional living arrangement. From first-time buyers teaming up with parents to retirees aging in place with help from loved ones, multigenerational living creates opportunities for financial flexibility and emotional connection. We have a myriad of funding options to consider that may make this dream become possible for you and yours.

According to Pew Research Center, nearly one in four adults aged 25 to 34 now lives in a multigenerational household. Rising housing costs, caregiving needs, and a desire for deeper family bonds are all driving this trend.

Whether you’re looking to renovate an existing home or buy a new property to accommodate your family, the right financing is key to making multigenerational living work for everyone.

Financing Options for Multigenerational Living Homes

1. Renovation Loans (FHA 203(k), Fannie Mae HomeStyle)

If you’re upgrading your home to make space for parents, children, or extended family, renovation loans can combine purchase or refinance with improvement funds in one convenient loan.

  • FHA 203(k): Great for essential repairs, accessibility upgrades, or adding a new suite.
  • HomeStyle Loan: Offers flexibility for both structural and cosmetic updates.

2. Construction Loans

Starting fresh with a new build? Construction loans provide short-term financing for building a new multigenerational home, then convert into a traditional mortgage after the project is completed.

  • Funds are released in stages during construction.
  • Requires a qualified builder and detailed project plans.

3. Cash-Out Refinance

If your current home has built-up equity, a cash-out refinance can help you tap into that value to fund renovations or additions. It’s a simple way to reinvest in a home to make it fit your family’s changing needs.

4. Home Equity Line of Credit (HELOC)

HELOCs give you flexible access to funds over time from the equity in your home. They’re great for ongoing or phased projects—like gradually converting a basement or adding an ADU.

  • Typically interest-only during the draw period.
  • Can be reused as you repay the balance.

5. Alternative Financing

When traditional financing isn’t the right fit—due to time constraints or credit issues—hard money loans offer fast, asset-based solutions. They’re ideal for quick renovations or when time is of the essence.

  • Shorter terms and higher rates, but quick turnaround.
  • Based on property value rather than borrower profile.

Why Families Choose Multigenerational Living

  • Stronger Mortgage Applications: Multiple incomes can improve loan eligibility and increase purchasing power.
  • Shared Expenses: Utilities, food, and taxes are easier to manage when costs are split.
  • Built-in Support: Family members can help with childcare, eldercare, or household responsibilities.
  • Preserving Legacy: Sharing space also means sharing traditions, values, and time.
  • Enhanced Property Value: Investing in renovations like an ADU or in-law suite can increase long-term value and functionality.
  • Cost Savings: Aging can be expensive when families have to pay caregivers or place their relative in a community. If families can stay together and provide this support safely, it can lead to major cost savings.
  • Aging in Place: Studies show that staying in our own home for as long as possible leads to greater cognitive ability over time and being moved to somewhere unfamiliar can exacerbate cognitive decline. Multigenerational living can make it possible for our loved ones to stay home longer.
  • Shared Responsibilities: Household chores and maintenance tasks can be shared among family members, easing the burden on any one individual.
  • Cultural Preservation: For some families, living together allows them to maintain and pass down cultural traditions and languages more effectively.
  • Flexibility: Multigenerational homes can adapt to changing family needs, such as accommodating adult children returning home after college or providing space for aging parents.
  • Safety and Security: Especially for older adults or those living in areas with higher crime rates, having multiple generations in one home can provide a greater sense of safety and security.

Thriving in a Multigenerational Living Space

Multigenerational living isn’t just about proximity—it’s about planning for the life you want, together. The best way to get started is by working with a mortgage broker who understands your financial goals, family structure, and long-term vision and has the experience to identify which loan product offers you the optimal terms.

Whether it’s creating a separate entrance for more privacy, converting a garage into a suite, or redesigning shared living spaces for better flow, thoughtful renovations can make all the difference. Let’s talk about how you can modify your home to support the needs of every generation—comfortably, safely, and intentionally.

At Freestone Mortgage, we specialize in helping families find the right loan to build, buy, or renovate a home that fits everyone. If you’re considering a multigenerational living setup, we’ll help you explore your options, compare loan products, and guide you every step of the way.

Let’s create a space that works for your whole family. Reach out today to start the conversation.

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