I currently live with a couple of roommates, and it seems like together, we could finance a pretty decent mortgage, given the amount of rent we pay a month. I really don't actually plan on doing this, for a myriad of reasons, but I was wondering if it was even possible? Can several (3-4) people co-own a house? How does the mortgage work?
2007-03-05 07:26:36 · 5 answers · asked by shiva.harris@sbcglobal.net 2 in Business & Finance ➔ Renting & Real Estate
Yes several unrelated individuals may purchase a house together.
First I would make up some type of agreement as currently all are interested in purchasing a house, but priorities change and so do people, so I would draw up some type of contract indicating how one could leave the group, transfer individual ownership and to whom,as well as put other things in the contract that you think are necessary.
After that the procedure is the same as for anyone else purchasing a house.
Find a mortgage broker, complete an application, have a credit check ran on each of you concerned and see what you are qualified for.
Once qualifed you will then be able to use a real estate agent and find a house.
The mortgage broker will tell you what documents and information is needed to complete the application for each of you.
The mortgage works the same, what ever the monthly mortgage payment is will have to be broken down as to who will pay and how much.
I hope this has been of some use to you, good luck.
"FIGHT ON"
2007-03-05 08:08:29 · answer #1 · answered by Skip 6 · 0⤊ 0⤋
Yes, you can all own the house. You have several choices on how to hold title.
As for a mortgage, most lenders don't particularly like to see this sort of thing. So, they'll want one of you to take out the mortgage. Then, the other can chip in their share. A contract would be a good way to enforce this.
2007-03-05 15:35:39 · answer #2 · answered by Jay 7 · 0⤊ 0⤋
Owning a house versus being on the mortgage are two seperate issues. You can have as many people on the title as you can count (I've seen 10 people on one title)-- but usually having too many people on the mortgage can be a problem. That being said, they could be qualified depending on credit/income circumstances.
The only this is this: although everyone on the title would be liable to pay the debt only the people whose names are on the mortgage would have the debt appear on their respective credit reports.
Something to consider.
2007-03-05 15:39:51 · answer #3 · answered by happybostonian 2 · 0⤊ 0⤋
I don't see why you couldn't but you would have to either go to a mortgage company or a bank to see if you could do this.
2007-03-05 15:35:14 · answer #4 · answered by shorty 6 · 0⤊ 0⤋
It can certainly be done if you have the collateral, credit history and downpayment. You can co-own a house, but be careful how you do it-you wouldn't want to fight over selling it someday.
2007-03-05 15:40:35 · answer #5 · answered by Year of the Monkey 5 · 0⤊ 0⤋