Posted on: 06th Jun, 2009 05:48 am
Hi,
My boyfriend and I have decided to purchase a home together. We are both residents of the state of Wyoming. There was a program put out a few weeks ago that had a 2.5% interest rate, but the income cap was 63K/year, and with both of our incomes, that put us over the limit. Also, we wanted to use his VA eligibility, but the VA would not let me on the mortgage because I am not his spouse and do not have VA rights of my own. We made the decision to get the Spirit of Wyoming! loan program and use the VA loan to save the extra interest and not have a down-payment required. Now, we're in a bit of a dilemma ~
My stance: I am 100% okay with being financially obligated to the house. Originally, we had planned to mortgage the house together, and the only reason we did not was because we saved thousands using the special Wyoming program (About 15K the first five years alone!)and the VA loan. I have said, however, that since I am paying equally into the mortgage, I want to make sure that I have rights to the property, rights to the equity if/when we re-sell the house. We're talking about a lot of money, here, and I don't want to have some unforeseen falling out (I don't anticipate it, but you never know), and then have to walk away with nothing, and have invested years into this property and have no return. If I wanted to just throw my money away and invest for someone else's benefit, I'd rent.
His stance: He is hesitant to put me on the deed after closing because he does not want me to be able to have 50% claim to the house if it is sold but no real legal financial obligation to the property since I am not on the mortgage. I have offered to sign a lease, but a lease is not the same as the 30-year obligation he is tied to with the mortgage. Again, he doesn't see us breaking up, but with this kind of money on the line, I think we would both sleep easier knowing there were safeguards in place.
So ~
Does anyone have a solution to how I can have rights to the property, and he can have the assurance that I am going to be held accountable for paying my share of things? I know it's no big deal to put me on the title, but we have no idea how or what kind of papers to get drawn up to say that I will be financially liable. The only option I would see would be to re-finance, but I'm NOT loosing this amazing mortgage rate. There were only a limited # of mortgages available through this program, and we were very lucky to get one of them (there were roughly 100 mortgages available at this rate and they were practically gone by the end of week 2 of the program being started).
The big problem is that it's a VA loan, and I know they get weird about renting or having an agreement that entitles me to equity since that would be like 'selling' the VA loan to a non-veteran.
Help!!!
My boyfriend and I have decided to purchase a home together. We are both residents of the state of Wyoming. There was a program put out a few weeks ago that had a 2.5% interest rate, but the income cap was 63K/year, and with both of our incomes, that put us over the limit. Also, we wanted to use his VA eligibility, but the VA would not let me on the mortgage because I am not his spouse and do not have VA rights of my own. We made the decision to get the Spirit of Wyoming! loan program and use the VA loan to save the extra interest and not have a down-payment required. Now, we're in a bit of a dilemma ~
My stance: I am 100% okay with being financially obligated to the house. Originally, we had planned to mortgage the house together, and the only reason we did not was because we saved thousands using the special Wyoming program (About 15K the first five years alone!)and the VA loan. I have said, however, that since I am paying equally into the mortgage, I want to make sure that I have rights to the property, rights to the equity if/when we re-sell the house. We're talking about a lot of money, here, and I don't want to have some unforeseen falling out (I don't anticipate it, but you never know), and then have to walk away with nothing, and have invested years into this property and have no return. If I wanted to just throw my money away and invest for someone else's benefit, I'd rent.
His stance: He is hesitant to put me on the deed after closing because he does not want me to be able to have 50% claim to the house if it is sold but no real legal financial obligation to the property since I am not on the mortgage. I have offered to sign a lease, but a lease is not the same as the 30-year obligation he is tied to with the mortgage. Again, he doesn't see us breaking up, but with this kind of money on the line, I think we would both sleep easier knowing there were safeguards in place.
So ~
Does anyone have a solution to how I can have rights to the property, and he can have the assurance that I am going to be held accountable for paying my share of things? I know it's no big deal to put me on the title, but we have no idea how or what kind of papers to get drawn up to say that I will be financially liable. The only option I would see would be to re-finance, but I'm NOT loosing this amazing mortgage rate. There were only a limited # of mortgages available through this program, and we were very lucky to get one of them (there were roughly 100 mortgages available at this rate and they were practically gone by the end of week 2 of the program being started).
The big problem is that it's a VA loan, and I know they get weird about renting or having an agreement that entitles me to equity since that would be like 'selling' the VA loan to a non-veteran.
Help!!!
Get an attorney to draw up a contract between the two of you. That contract should state what your obligation will be and what your rights would be should you break up and/or sell the home.
The other way to handle it is for him to have sole ownership of the property and all you do is pay him rent or pay for some expenses. The rent you would have to pay anyway if you were not with him. Just do not split everything 50/50 with him. For example, if the home costs him $1500 per month then you pay him $500 for rent.
Doing it this way will protect both of you. If you break up then you lost nothing because you would have paid SOMETHING if you were living on your own anyway. If the two of you eventually get married, then at that time I am sure he will add you to the deed.
The other way to handle it is for him to have sole ownership of the property and all you do is pay him rent or pay for some expenses. The rent you would have to pay anyway if you were not with him. Just do not split everything 50/50 with him. For example, if the home costs him $1500 per month then you pay him $500 for rent.
Doing it this way will protect both of you. If you break up then you lost nothing because you would have paid SOMETHING if you were living on your own anyway. If the two of you eventually get married, then at that time I am sure he will add you to the deed.
MelissaB1103
Welcoem to forum.
You can have your name on the deed with out yoru name on the loan.
The bank cannot stop you or your boy frined from putting both of your name on the property.
Good luck and feel free to ask
Welcoem to forum.
You can have your name on the deed with out yoru name on the loan.
The bank cannot stop you or your boy frined from putting both of your name on the property.
Good luck and feel free to ask
