mortgage share advice

sarahkn · Joined: 25 Aug 2005 Posts: 1

Me and my brother currently live at home with our parents.

My dad does not have a mortgage and has asked me and my brother if we would apply for a joint mortgage with him. I am weary as my dad is 51 and am concerned about whether he will be able to keep up the payments for the term of the 25yr mortgage. Also me and my brother will one day want to have our own home, my parents seem to think if we went into this joint mortgage with them then because we part own a property it will be easier for us to apply for a mortgage of our own as we will have claritoral so to speak.

Please could someone give me advice on the right thing to do.

Many thanks

Sarah

macp · Joined: 13 Dec 2005 Posts: 8 Location: Phoenix

I would not put it in your name, you can always add your name to the title after closing. If you do it this way you still are part owner but it will not affect your credit. If you were to put your name on it before hand it will be put on your credit and will raise your debt to income ratio in the future when you try to buy a home. Also if you were to buy your own home it would have to be considered a second home and your rate WILL be higher than if you were to buy your first home. On second homes alot of lenders require money down but there are lenders that will still do it at 100% but you usually have to have a 680 or better and still your interest rate will be higher by about 1 percent compared to if you were buying your first home.

chow · Posted: Tue Dec 13, 2005 5:29 pm Post subject: Re: mortgage share advice

[quote="sarahkn"]Me and my brother currently live at home with our parents.

My dad does not have a mortgage and has asked me and my brother if we would apply for a joint mortgage with him. I am weary as my dad is 51 and am concerned about whether he will be able to keep up the payments for the term of the 25yr mortgage.

Also me and my brother will one day want to have our own home, my parents seem to think if we went into this joint mortgage with them then because we part own a property it will be easier for us to apply for a mortgage of our own as we will have claritoral so to speak.
Please could someone give me advice on the right thing to do.

Many thanks

[quote="sarahkn"]

Anyone on the mortgage and title has ownership rights. If you are not signing the note, then you are not responsible to make the payments. But depending on the state-we could come after you for payments if you have rights to the land, and Real Property.

Clearly what you are being asked to do, is sign the note along with recieving rights to the property. At this point, anyone named on the note is accepting reponsibility to pay for the note. You already don't have a warm and comfy feeling about him paying the note, and he asked you to go in it with him.

Blood is really thick, it becomes a little thicker if you accept responsibility, and the other parties bail-and everyone is on the title and mortgage-but not on the note.

Here is the Devil's advocate statement:

Who can I collect a payment from, and what do they own? Who's on the title? Because they are securing this note, with a title, and if the note holder is no good, then I need to go after the people on the mortgage.

And your dad doesn't have a mortgage, but want's one at age 50+ WHY again?

Credit is earned. You're not born with it, you can't inherit it.

Greg Phillips · Joined: 13 Dec 2005 Posts: 123 Location: Chillicothe, Ohio

What is the reason your father needs you 2 to help him get the mortgage?

What type of plan does he have for retirement? Does he have assets and/or income to retire on that would more than pay the payment?

This would be a debt on both your reports and hinder you from obtaining credit in the future. (Possibly) You would have to prove he makes the payments nearly every time you apply for any loan.

I will give you more feedback as you post more information.

December is slow for me thus far so I will help people or learn something :lol: <--- I like this smiley.

Haplo · Joined: 20 Jan 2005 Posts: 2422 Location: Springfield, IL

She posted in august, which kind of confuses me as to how it went this long unnoticed...

Slow December??? Here I decide to go out of town for a few days for the holidays and suddenly everyone wants a loan. I wish I had a few days of rest, but I'm not going to complain for too long ;) I like being able to have dinner on the table 8) <--I like this smiley