Posted on: 17th Feb, 2010 12:51 pm
My boyfriend of 4yrs. and I are looking at purchasing a home. We have considered putting the loan in one persons name, in order to keep finances seperate in case we seperate. Both of our names would be on the deed.
My concerns are: loss of any tax benefits in result of home ownership, lender having legal rights to the house in the case of financed party passing, and audit issues
We both have great credit. Is it best to both be on the loan or not?
My concerns are: loss of any tax benefits in result of home ownership, lender having legal rights to the house in the case of financed party passing, and audit issues
We both have great credit. Is it best to both be on the loan or not?
if you are on the deed, then you can continue to make the payments even though your boyfriend has passed. you can still get the tax benefits if you can prove that you have been making the payments. in addition, you can also refinance into your name. no worries.
>>We have considered putting the loan in one persons name, in order to keep finances seperate in case we seperate. Both of our names would be on the deed.
Your Note is going to have a due-on-sale clause that says you're unable to modify Title without their consent. They do that because changing Title as you're suggesting changes the Lenders risk level dramatically, and they don't like that. If both of you want to be on Title, both of you should also be on the Note.
Your Note is going to have a due-on-sale clause that says you're unable to modify Title without their consent. They do that because changing Title as you're suggesting changes the Lenders risk level dramatically, and they don't like that. If both of you want to be on Title, both of you should also be on the Note.
