Buying a Home with Friends or Family | Maryland Mortgage Lending

If you?re ready to buy a home but don?t have a significant other or spouse to buy with, you?ve got another option: buying a home with friends or family. Single individuals often have trouble qualifying for a mortgage on one income, or coming up with the money for a downpayment. When you come together with friends and family, though, you can make the dream of home ownership happen. Sometimes single parents come together to buy a home, or college roommates may share in the home buying process. Whatever your circumstances, if you?re thinking of buying with friends or family, here?s what you need to know:

Shared Ownership Now can Turn Into Sole Ownership Later

If you?re worried about the possibility of buying a home with friends or family members now because you don?t want to share a home forever, don?t worry. You and your co-owner will both experience life-changing situations again and again over the course of your life. Maybe one of you will get married and decide to move out. Or maybe one of you will get a promotion at work and decide to buy the other person out for sole ownership.

A shared ownership situation now can always turn into sole ownership later. If you work out a shared ownership contract that gives both you and your co-owner the ability to buy out of the home, you?ll have the piece of mind of knowing the situation isn?t forever, and you?ll be making money in the meantime.

Be Creative in Your Home Ownership Contract

If you?re thinking of buying a home with someone, be creative in your co-ownership contract. If you?re a woman who has the money for a home but not the know-how to do renovations and remodeling, partner with someone who can do that for you! You can assign a value to the renovation and remodeling work so that the other person can ?repay? you for the home and their share, and you get free work to improve the home. Non-traditional co-ownership situations can be extremely beneficial for one or both parties ? just be creative and think outside the box to create the best situation for you.

Source: http://maryland-home-mortgage.net/2012/08/13/buying-a-home-with-friends-or-family/

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