Is it legal to rent out a house to pay the mortgage?
As others have mentioned here, it depends when the house becomes a rental. If you buy a house strictly to rent it out, then you MUST inform the mortgage lender, and they will charge you a higher rate. Also, they may not take the proposed rental income as qualifying income if you have been a landlord for less than 2 years.Now, if you buy a house and live in it as your primary residence for a while, and then decided to rent it out, it's a bit easier. You should inform your mortgage lender and they may charge you a fee but probably won't raise your rate or deny you.One small wrinkle. If you are still living in the house but decide to rent out a room or two while you are still living there, this is OK (though you should get some extra landlord's insurance), but should you wish to refi the mortgage you cannot use rental income from your primary home to qualify. You can use the rental income to pay the mortgage, but it can't be counted as qualifying income for a new loan on that house.
If my parents help pay for the mortgage down payment on my first house, what is the recommended legal way to set that up?
You have created a number of issues with your scenario. First issue is a Tax Issue. If your parents contribute, will it be in the form of debt? If so, it is no longer a down payment nor gift money. That leaves you in a position where you have to come in with at least some of your own money. There are tax ramifications for your parents as to how they intent to treat this property on their tax returns. If they want to come in with the money as a Gift, well then a Gift is a Gift and there is no promise of paying back. However, IRS will have something to say about it. Very important that your parent's consult with their CPA. If you call it a gift, but it is not gift and you later secure it with a mortgage or deed of trust, then you have committed mortgage fraud.Another issue is the Mortgage Issue. Most mortgages require at least a minimum of cash investment by the borrower. Unless your parent gifts 20%, then that takes us back to the first issue above. Is it really a gift?Next issue is a legal one. How will your parents secure their investment / contribution? Is it debt? If debt, then they may want a Mortgage or Deed of Trust. If debt, then your mortgage loan officer is going to want to chime in as this new debt will have to disclosed to underwriting and will affect your Debt to Income Ratio. Still a legal issue, ownership. How will they take title with you? Joint Tenants? Tenants in Common? Each of those have ramifications for you.The list could go on. I would recommend that you sit down with your Mortgage Loan Officer and confirm what sources of that "down payment" are acceptable. Then review that with your parents. Your parents should then consult CPA, Investment and Legal Counsel to discuss the ramifications for them. You need to consult your own Legal Counsel on the affect of your parents decision on how they are going to contribute and secure their contribution. I can tell you that there is no fight like a fight over money between family. Especially between parents and children.
If my aunt get a mortgage and her name & my name is on the deed, when she passed away what about my credit?
Is your aunt really going to get a mortgage or is she really going to co-sign for you? That makes a difference. The mortgage documents and the deed documents are completely separate. If you are on the deed, but not on the mortgage, then you have no obligation to pay the mortgage, but you risk losing the home to foreclosure. If you are on the mortgage but not on the deed, you are obligated to pay the mortgage but you have no rights to the property. So, lenders require the mortgagee and the owners be on the loan and deed documents to limit legal issues. All three of you will probably have to meet the lenders credit requirements. If all three of you are on the mortgage documents, the all three profiles will be affected the same way (late payments, foreclosure, etc). However, if you can't meet those requirements, your aunt can take out the mortgage in her name alone and the deed will be recorded as she being the sole owner. So if she dies, you lose the home unless you can qualify for a refi and take over the home. The lender isn't going to care WHO actually makes the payments, as long as the payments are made. If all of you can be on the deed, I strongly suggest the deed be recorded as Joint Tenants with Right of Survivorship. That allows the deceased's ownership to be passed to the survivors without going through probate (or needed to be in a will). Joint Tenants in Common means your share of the home is completely separate from other owners. If you die, your share goes to your heirs, not the other owners (unless they are also your heirs). You can sell your share to anyone without the other owner's knowledge or permission.
Looking for co-ownership agreement when only one name is on the mortgage and we are unmarried.?
Purchased a home with my boyfriend with only his name on the mortgage with the agreement that I paid 1/2 the down payment and 1/2 of all bills. How do I protect my interest in the property if something happens to him?
Getting a mortgage at 18 in the UK?
I'm 17, turning 18 in December and i am really thinking about my future. I have started putting some cash away in a savings account for my future to help contribute. I start a apprenticeship in July and i will be getting a set wage plus commission. For the rest of this year i am still going to put money away in my account. Im thinking about getting a mortgage sometime next year, do you think ill get one? By then i should be an qualified employed hairdresser.
How much money to buy out my partner of their share of the house we brought for 150,000 12 years ago if I put 50,000 down and they put 25,000 down and I paid off the mortgage in 5 years. My partner paid 280.00 per month during that time?
Your question lacks some specific information to make a better recommendation. So when you say partner, do you mean in a business relationship or are you in a relationship? If in a relationship, did you buy the home and homestead it as a primary residence? It sounds like you paid the house off the partner can very well ask for an appraisal of the property, typically 3 will be done, then 50% of that value can be asked for to release their name from the deed on the property. All of these numbers you have thrown out is just clutter and would come down to arbitration to determine if there would then be a reduction but in homesteaded states where 2 parties bought the property together and homesteaded it it gets tricky. If you have to litigate get yourself a bull dog real estate attorney who will bring in all of these other numbers. Good luck. Did you take title as tenants in Common or Joint Tenancy— these are the things that need to be discussed with a qualified person.
Can a person move into my jointly owned home without my permission?
If they have the permission of the person with whom you jointly own the property, then most likely yes (though that could vary depending on your jurisdiction).Part of the nature of joint ownership is that you lack complete exclusive control over the property. Absent other issues (e.g. a restraining order), joint owners share the ability to invite guests.
Can you back date a quit claim?
Hello, My husband and his parents are all on the title for the house that we (my husband and I) live in currently, it's a joint tenant title. The mortgage loan itself is in my in laws names only. My in laws are the ones who put in the money for the down payment on the house and are the ones who pay the taxes and for any upgrades and repairs on the house as well. They are renting the house to my husband and up until I moved in about 2 years ago my husband was only making $400 in rent to them and then had roomates take care of the rest. When I moved in we are now paying $1100 for the rent but my in laws are still putting in $200 to finish out the mortgage payment. I am asking if a quick claim can be back dated because they have just found out that they have been filling their taxes wrong by claiming a 100% on the house when with my husband being on the title they shouldn't have been claiming 100% because of them being joint tenants. So now they are being audited for the last 10 years, to when they first bought the house, and she seems to think that if we can file a quit claim and back date it to where it shows that he was "never" on the title it will keep them from having to pay any taxes. I just want to see if that is even possible and/or legal??