I am about to make my first purchase of a house. I have 2 roommates - 1 will be paying rent to me, and the other will be "buying in" on the house. I was wondering if anyone knows the ins and outs of equity. Is it possible to cosign and split our assets when the house is eventually paid off? Any help would be greatly appreciated.
2007-01-29 14:15:57 · 2 answers · asked by ganymede_44 1 in Business & Finance ➔ Renting & Real Estate
Yes, it happens all the time ... with divorce. Splitting the equity after a sale is a piece of cake. The harder part is splitting the tax advantages of home ownership and I suggest you talk to a CPA about that. Make sure that both buyers are signing the promissory note and not just simply being "on the mortgage". If you sign the note and your roommate doesn't you are solely responsible for paying the mortgage. Obviously you both would have interest in having the mortgage paid, but if at a later time your roommate decides to stop chipping in for the monthly payment, but still remains on title he would still be entitled to half of the equity (profits) when the house is eventually sold. Just go in a true equal partnership and you should be in good shape
2007-01-29 14:34:12 · answer #1 · answered by linkus86 7 · 0⤊ 0⤋
If you are buying this house you should do what most people do, charge rent to the other 2. If this is actuall a 3 peoplepurchase, all 3names need to be on the morgate and title. If you want to do a three way purchase you need to see a lawyer for a "prenup" in regards to what happens when one moves on.
2007-01-29 14:24:06 · answer #2 · answered by sweet sue 6 · 0⤊ 0⤋