Parent Power^®

Now you can help family members without liquidating your assets or disrupting your investment strategy.

If you want to help a child or other family member buy a home, the biggest obstacle they face is often the cash down payment -- up to 20 percent of the property's value. The Parent Power^® program eliminates the need for a cash down payment by offering 100% financing with a pledge of eligible securities.¹

The Parent Power^® program consists of the following:

• Parents/sponsors may pledge eligible securities for a child or family member to guarantee a portion of the loan amount in lieu of a cash down payment.
• Assets remain invested and working for the sponsor while deferring potential capital gains tax liability.¹
• Reduce costs for child or family member by eliminating costly mortgage insurance premiums, with adequate securities pledge.
• Parent Power is available with our Adjustable-Rate, Fixed-Rate and Term Adjustable-Rate mortgages.

To give you a better understanding of how the loan process works, take a moment to review the steps that will need to be taken to set up your Parent Power^® loan. Click here to view the process steps.

Merrill Lynch's Mortgage 100^®/Parent Power^® programs require the pledge of eligible securities owned by an individual and maintained in a Merrill Lynch, Pierce, Fenner & Smith, Incorporated brokerage account. Member, Securities Investor Protection Corporation (SIPC). Mortgage 100^®/Parent Power^® may not be suitable for everyone and a default on your mortgage could result in both the loss of your home and your securities. Should the value of the securities pledged as collateral decrease below a certain level (as specified within the loan documents), the deposit of additional assets and/or liquidation of assets may be required. Merrill Lynch may liquidate some or all of the securities in the account without contacting you. You are not entitled to an extension of time to meet a collateral call or choose which securities in your account are sold to meet the collateral call. Liquidation may result in adverse tax consequences. Mortgage interest may not be deductible if tax-exempt obligations are pledged as additional collateral. Trading within the brokerage account for the 100% financing programs is subject to restrictions.

¹Please consult your tax advisor regarding the deductibility of mortgage interest.