Question about a loan? Please help?

Question

I am a college student and I plan on taking out a student loan. My boyfriend and I (who I've been w/ for 5 years and have a child with) are going to use the money to put a down payment on a house. I was just wondering if there was any kind of documentation I can have him sign saying that he was involved or something.

Please no criticism, I've thought this through and plan on doing it, I'm only 2 years away from completing my nursing degree so I'm not worried about being able to pay it back, I was just wondering in the event that I ever needed it if there was a way document his involvement so if something ever did happen between us, he would have to repay me. (He's not in college, so he can't take out one himself)

Thanks

Answer 1

No criticism here. Student loan rates are looking more and more attractive compared to mortgage rates. And you ARE entitled to obtain financial aid to cover some housing costs.

Here's the tricky thing about student loans: they will definitely stay in your name, regardless of what you do with the proceeds. Even if you use the money to purchase something that benefits someone else, you alone are on the hook for the repayment of the loan. For example, if a parent obtains a "parent loan" (i.e., a PLUS Loan) to pay for their child's education, they can't turn around force the child to repay the loan -- the loan is in the parent's name and can't be transferred, even by consolidation. That parent would have no legal recourse if s/he made a deal with the student and the student reneged (according to Federal Student Aid guidelines, anyway).

That said, getting *some* documentation is better than nothing. You could contact a lawyer to draft an agreement stating that you "bought into" the house for "X" dollars and expect to get that much money if you are ever forced to leave the house. If you don't want to go to those extremes, you could write something yourself and get it notarized. It might not hold up in court, but if you do split up and it's even remotely amicable, you'll have the document to say, in effect, "You promised. Be a man and pay me back."

Answer 2

I realize your situation and while i'm sure many people have tried to persuade you against this, you sound like you are intelligent enough to make your own decisions.
As for having some security with the house and the money, I think the best thing to do is to put the house in your name only until your boyfriend is out of school and you two are getting married and starting a family. Since the down payment will be your money from the loan, just make sure to document everything. The down payment and the monthly mortgage payments should be made using your bank account so that you can have a paper trail in case anything should go wrong. You will have the documentation of what you have spent on the house. Other then that, you would have to pay a lawyer to get something drawn up.
As for the student loan part of it, I assume you are doing a private student loan for this since it is beyond the scope of cost of education. Check out http://www.thinkfinancial.com if you will taking a private loan. Quick turn around time and the check is sent directly to you. Good Luck with everything.

Answer 3

Let me get this straight - YOU are taking out a loan so you TWO can buy a house? Here is my advice, don't have him sign anything and don't put his name on the mortgage. If you do that and something does happen, well, you're out whatever you consider his "portion" of the loan to be but you still get to keep the entire house. Now, if you make him sign that and everything goes south, he can take half your house because he paid half the downpayment.That assumes partial ownership.

Answer 4

Please check with your mortgage lender to see if they will accept a down payment that comes from borrowed money ("sourced"). If they will check to see if it needs to be "seasoned" (in an account for a certain amount of time prior to spending). Consider a contract or lease agreement with your boyfriend that states in clear wording that he is pay $X a month towards the mortgage and in the event of a break up he is to pay $X to reimburse you for your initial down payment loan. Make sure to have the document notorized.

Answer 5

If your wanting him to sign an agreement that if you two were to break up then he will be responsible for XXX dollars I think you could just type out a agreement btwn you two and have him sign it with a witness.

But remember regardless you will be the one responsible for paying that loan back if it is your name.

Answer 6

I hoestly dont know, but if you are worried about it i would just in case