Background

Sophia had been renting for years, diligently saving for a down payment on her first home. She had a steady job, a solid credit score, and was pre-approved for a mortgage—but rising housing costs meant she was $20,000 short of what she needed for the down payment.

She considered taking out a personal loan or withdrawing from her retirement savings, but both options came with drawbacks—high interest rates or long-term financial consequences.

Her father, Robert, had always emphasized the importance of homeownership and wanted to help. He had the savings to cover Sophia’s shortfall, but instead of gifting the money, he wanted to structure it as a loan to encourage financial responsibility while still providing support.

Loan Request & Agreement

Using, Sophia submitted a $20,000 loan request to Robert, proposing a 60-month repayment plan with 3% interest—far lower than a personal loan from the bank but still allowing Robert to earn some return on his savings.

Robert reviewed the request and adjusted the terms, extending the repayment period to 72 months to keep the monthly payments more manageable. He also included a "skip one payment per year" option, giving Sophia some flexibility in case of unexpected expenses.

After finalizing the agreement, they digitally signed the loan contract, and Sophia received the funds instantly, allowing her to secure her dream home without financial strain.

Repayment & Outcome

With the loan secured, Sophia finalized her home purchase and moved in, grateful that she was able to afford a home without taking on additional high-interest debt.

The automated repayment system and reminders in Pari ensured that she never missed a payment. The app also provided Robert with a real-time view of the repayment progress, eliminating any need for awkward conversations about money.

After four years, Sophia received a work bonus and decided to pay off the remaining balance early. The app facilitated the final payment, and Robert received a notification confirming that the loan was fully repaid.

To celebrate, Sophia invited her father over for a home-cooked dinner in her new house, thanking him for his support in making homeownership possible.

Key Takeaways for Users

✅ Homeownership Without the Bank Hassle: Sophia avoided high-interest personal loans and secured her down payment.
✅ Family Support, Structured Fairly: The loan terms ensured accountability and financial responsibility.
✅ Flexible Repayment Options: Robert allowed Sophia to skip one payment per year if needed.
✅ Early Payoff Advantage: Sophia paid off the loan two years early without penalties.

Final Thoughts

Sophia and Robert’s story proves that family loans, when structured correctly, can provide life-changing financial support while maintaining trust and fairness. Thanks to Pari, they were able to create a clear, fair, and stress-free loan agreement that benefited both sides.

Looking to buy a home but need help with the down payment? Or want to support a family member in achieving homeownership? Our platform makes lending and borrowing between family and friends simple, secure, and fair.

Download the app — Get started today!