Board Topic: Purchasing a new home with a friend
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Purchasing a new home with a friend

Posted by: Joann May 24 2004, 01:53 PM
How does a married woman purhcase a new home with a friend separately from her husband? (Her and her husband agreeded that the down payment will come from their joint assets and he will sign off on the new mortgage). Do they apply separately, each for half of the borrowed amount? Who claims the property tax on their taxes and whjo claims mortgage interest?

Posted by: loanuniverse May 24 2004, 08:54 PM
Joann:

You can purchase residential property with someone that you are not related to. That is not a problem. The lender would want both of you to be obligors under one note. Splitting the notes does not make sense from the point of view of the lender. The person that gets to claim taxes and interest as deductions on the taxes is open to discussion between the two of you. However, you have to remember that those items are only deductible if you are occupying it as your personal residence. {they can also be deducted if you are using it as a rental, but your post leads me to believe that this will be owner occupied}.

P.S: remember that I am not a residential lender or a tax advisor. Therefore, I encourage you to get advice from some.
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