What is the best way for four people to buy a house together?

Question

I am considering purchasing a house with 3 people (2 couples.) I am looking for advice on how best to apply for a mortgage. Should one person do it with a side contract between the partners? Or should all four co-sign the loan?
I think at least 2 of us could qualify for a loan on our own.

Answer 1

You want all to Co-sign the loan, so that its in writing and in contract form that you all agreed to the terms and conditions of the payment.

I would also ask your local bank what the general process is for multiples, and dont use BofA, or Wells Fargo.

Any side contract you get should be drawn up, and/or approved by an attorney or other scribe at law. Theres probably forms for that sort of thing on some gov website, but I wouldnt know where to look. I would just get all their hancocks on the original paperwork, so that it is undisputable.

You better make sure that sucker has 3 full baths, and at least 2800 sq feet, with 2 car garage or better.

Answer 2

All four of you need to get down to the bank and have your credit checked, and supply the lender with your employment in income information for the last two years. You will all have to be approved, and although you will fill out seperate residential loan applications, you will all be listed on the mortgage and the deed to the home. Legally this would be the best way as everyone shares the liability on the mortgage equally, however, if one person from each couple applys for the mortgage only all for can still be listed on the deed. Contractual agreements usually end up in court if anything goes horribly wrong. Protect yourself, and make sure you have a good realestate attorney to watch over everyones interests. Good Luck!

Answer 3

Speak with your attorney about establishing an LLC (Limited Liability Company). Each of the 4 of your will be stock holders in the LLC (25% respectively) and the LLC will actually own the property. Provides a tax shelter and better coverage to you personally should the house ever yeild any unwanted liabilities.

Answer 4

How about one person buy the house, and the other rent? Having 4 people on the loan gets tricky as soon as somebody hurts someone else's feelings and walks out, never to pay his/her share of the mortgage again. That will ruin EVERYONE's credit if the difference isn't made up!

Answer 5

Are you going to hire or purchase a place? Regardless,you will might desire to arise with an contract touching on paying the hire and utilities,nutrition purchases and enjoyed ones chores (between different issues). you may desire to positioned the contract in writing,all might desire to sign and all might desire to get a duplicate for themselves. it is going to might desire to conceal such issues as somebody letting a boy or lady pal circulate in and all people who comes to a decision to go out and how plenty be conscious they might desire to offer. There are no criminal limit that i comprehend of,yet there are actually not many landlords which will hire to 4 or 5 scholars and the college would possibly not enable beginners scholars to stay off campus. examine with the college first,then seem for a place off campus. The college may be waiting that can assist you you detect a good place to stay.

Answer 6

Bad idea. You are setting yourself up for tremendous problems down the line. Just imaging having all four names on the deed, and something happening that causes the four of you to seriously not get along????

Answer 7

all should sign the loan so there is no question to owner ship if something should go wrong with your friendship. why not buy an apartment house?

Answer 8

Don't even get close to doing this without alot of legal advice and an ironclad legal agreement.

Answer 9

The best way is to open an corporation or a LLC for all parties.

Answer 10

That NEVER ends well. EVER!

But if you insist, make sure everything is in writing and each couple has a good lawyer. :)