Buying a home with 2 other people

**fcreature** · 04-04-2008, 05:51 PM

Hello everyone.

I have a question. I'm pretty new at this so any help would be great. I've never purchased a home before. I apologize in advance if I am posting in the incorrect forum.

Me and 2 friends are considering purchasing one of our parents homes. They want about $170,000. We are all in college right now, but we run a business that generates a substantial income and we want to move in together.

So basically we want to each own a third of the house (paying a third of the mortgage each). We will need a mortgage. I was thinking we would put $25,000 down, so a mortgage on a principle of $150,000. From what I know, that would put the monthly payment no higher than $1,200 a month. My question is, is it possible to get a mortgage shared among 3 people? Or would one person have to get the mortgage and the other 2 sign a contract with that person to pay him and also insure the split ownership of the home? Sorry if I worded it confusingly, its pretty complicated (at least for me).

Also, if the only thing we can do is have one person get the mortgage, credit may be hard to come by. Even though we all make money, we are each only 19. This year for instance, I will probably have a revenue of $84,000, plus what my friends make. None of us have established our credit a great deal though. We all have good credit - its just that we haven't made enough purchases for it to be considered substantial. If we were all on the mortgage either as signers or cosigners, do you think we would qualify?

Any help on this matter would be great. I want to be prepared before I go any further with the idea.

Thanks!

**carlam** · 04-07-2008, 04:31 AM

A couple of things to consider:

If you are considering buying one of your parent's home, would they consider financing it for you? That would be the best case senario I think.

Second; you need to discuss the "what if" one of you wants out of the house, isn't paying their portion of the mortgage... these clauses should be drawn up by a attorney.

**Mike Taylor** · 04-07-2008, 04:53 AM

You can get a mortgage with 3 people on it, but I agree with Carla. You REALLY need to think about the future ramifications of this and go through a whole series of what if scenarios.

**fractional-homes** · 04-09-2008, 10:41 PM

This almost sounds like fractional ownership, with each owner owning a part of the home. You need to check with an experienced attorney for this before making the commitment. It can get complicated if you don't know what you get into. Fractional ownership is governed by a separate set of rules and law. A lot of issues are addressed, but you need to have a lawyer to make sure.