New Delhi, July 19 -- For young home buyers navigating a pricey housing market, the Bank of Mom and Dad is open for business.

About a quarter of Gen Z and millennial homeowners received help with their down payment from their parents, according to a LendingTree survey.

Loved ones can help in other ways, but each option comes with its own advantages and possible pitfalls. The key, experts say, is to make sure any arrangement is transparent and addresses potential challenges down the road.

Here's what to know.

The most straightforward way parents can help is to simply gift their children money, either for the down payment or the entire purchase price.

"That's the only thing that's clean cut," said Mark Sanaiha, founder of Macallen Capi...