Name on title but not on mortgage. What should you do when your name is on the title but not on the mortgage for your house?
Updated September 11, 2019. A lot of people are wondering whether they should add someone’s name on title but not on the mortgage of a piece of property. In looking over the comments section of this “Name on Title but Not on Mortgage” post, we’re struck by the variations of the question.
Q: I just sold a house I owned alone, and moved into a house that my fiance and I will share. The issue we’re facing is that the mortgage on this new house is in his name only. In other words, my name is on title but not on the mortgage.
Instead of refinancing and putting my name on the mortgage he wants to have me put on the deed with a quitclaim deed. I have substantial equity to add to this new property and don’t want to get screwed if the relationship doesn’t work out.
My question is should I insist on refinancing so my name is added to the mortgage along with the deed? Or is being on title enough to protect my assets?
Is Having Your Name on the Title but Not on the Mortgage the Better Half of the Deal?
A: Believe it or not, your fiance may be giving you the better half of the deal.
By adding your name to the title, but not to the mortgage, he is giving you half ownership in the property without any responsibility for making the mortgage payments. Of course, you will contribute equity and cash to pay the mortgage, but you don’t have any legal liability for this debt.
If your fiance has a great rate on his mortgage, you don’t want to lose that rate by refinancing. Some day in the future when rates are low enough or when you have to refinance your loan, you can refinance the property into both of your names.
Make Sure the Mortgage is Paid on Time so Your Credit Doesn’t Get Hit
With the current mortgage, you need to make sure, however, that is getting paid on time, as are the real estate taxes, so that your property (and equity) doesn’t evaporate in a foreclosure. If both of you will be contributing to the monthly expenses of the home, I suggest that you set up an online account to pay the mortgage, taxes and homeowners’ insurance policy automatically. Then, you can make sure enough cash is deposited into the account to make those payments each month.
Name on Title? Write a Will.
To protect your interests further, you and your fiance need to write and sign new wills in which you detail what will happen to the other half of the house you don’t own. You can solve this problem by putting the house into both of your names as joint tenants with rights of survivorship. That way, if your fiance dies, you’ll have ownership over the entire house. Make sure your wills cover all of your assets. This is a good time to discuss what each of you has and is bringing to the table.
In addition to wills, you and your fiance should sign powers of attorney for financial matters and health matters. Be sure your attorney has copies of all of your documents. You should keep executed copies in a safe place as well, such as a safe deposit box.
Money discussions are never easy, but this whole business of putting your name on title is a great opportunity to get it out into the open.
More on Topics Related to Mortgage and Title Matters
Credit 101: What’s in Your Credit Reports?
What’s the Best Way to Hold Title on Your Home?
Who Pays for Title Insurance When Selling a Home: The Buyer or the Seller?
Will Title Insurance Save This Homeowner From Paying an Outstanding Private Mortgage?
What’s the Best Way to Transfer a Home Title to a Family Member Who’s Been Living in the Home?
Parents, Children, Estates and House Title. How Does Property Title Pass After Death?
Will Adding Child to Title Increase Property Taxes?
Can I purchase a property that has my name on the title ( my name is not on the mortgage)
Yes, you can. But typically the lender will want the person who is on the mortgage to also be named on title.
Ilyce
So I got a house with my ex girlfriend over two years ago. Within a year we split. In order to get her to move out we agreed that I give her back the money she put down on the house. I did that and then she says she can’t get a place because she’s on the mortgage, so I refinanced. Not realizing that it left her name on the title about a month ago I started the process of refinancing again. They sent me paperwork for her to sign. So I contacted them and they said she was still on the title. Well I contacted her and have since filed a quit claim deed. She texted me today saying she’ll only sign for half the equity. Does she have any legal right to half since we made the agreement that I pay her back the money she put down and she wouldn’t come asking for more.
My father pass and I decided to sell the house my name it’s on the title n on the loan and recently I find out that I have a lien ony name but not on the property, can I removed my name from the title put the house under my daughters name and sell it?
Pau,
If your name is on title, then the lien is likely against the property, not against you personally. Depending on what kind of lien it is, you have to confirm that the lien is against hte property and if you can get it settled. Perhaps you can settle it as a condition of closing. The title or closing company should be able to help you with that.
Condolences on the loss of your father.
I have an unusual but specific situation. When we bought our house 14 years ago the interest rate was better for a loan for only my husband who had excellent credit. We bought the home and using a quit claim put me on the title also. Subsequently, my husband developed a brain disease. We declared Chapter 11 bankruptcy but have always made timely home loan and heloc payments.
i have conservatorship over my husbands person now, but because we are married and conservatorship over the estate seemed unnecessary and expensive I did not pursue it. I am also on his bank accounts.
I am wondering: can I legally refi into one loan the homeloan in his name and the heloc in my name taking advantage of the lower interest rates? He has been receiving offers and it would be great to condense our 2 loans to one at a low fixed rate. We receive a fixed income from his retirement and SS. and additional income from airbnb rental of our guesthouse. We owe aprox. 350K and have aprox 500K in equity.
This is not good advice. First, I would never recommend simply quit claiming a mortgaged property to another person without obtaining permission from your lender. This type of transfer likely violates the “due on sale” clause in the mortgage, and could potentially give the lender the right to call the loan. Anybody wanting to “add their name to title” needs to first talk to the mortgage lender.
Second, owning the home as joint tenants with rights of survivorship is great, but if your fiance dies, it still leaves you in the position of having to obtain your own financing on the property. The death of your fiance would likely be another event that allows the lender to call the loan. You can’t (or it wouldn’t be advisable) for you to keep paying on his mortgage if he’s dead. And if you are able to qualify for your own financing, it begs the question: why don’t you just get added to the mortgage now?
Finally, the purported “benefit” of not being legally obligated for the debt because you’re not on the mortgage is not all that great. In the U.S., state law typically provides that a lender’s sole remedy for a default on a home loan is to foreclose and get repaid from the sale of the home. THE LENDER CAN’T COLLECT PERSONALLY FROM YOU. They are limited to the proceeds from the sale of the home. So if you’re on the mortgage, the worst that can happen is that the lender forecloses on the home, takes it back, and you’re left with nothing. Yes, this will ruin your credit for a while, but it won’t cost you any personal assets. T hey can’t seize money in your bank account.
Finally, I would really, really question whether you should jointly own this property in the first place. You’re concerned about getting screwed — that’s a sign you’re not ready to own a property as joint tenants with rights of survivorship. If you own the property as JTWROS, you have a nasty breakup the day after, and then you die the day after that, your ex would get all of that equity you put into the house. Your family or friends won’t get any of it. If you are going to do good planning here, you need to consider the worst outcomes.
I had a similar situation where I had my name alone on the mortgage and put my wife on the title. I wanted there to be an easy transfer of ownership if something were to happen to me and I couldn’t have her on the mortgage because her credit was bad and we’d end up with a higher interest rate. Long story short, we’re now divorced. Like you said above, she got the better half of the deal because I had to split the equity in the home with her but I am still responsible for the mortgage.
I was married and bought a house back in 2006. We refinance but only my husband was on the loan I believe I was still om the title. Long story short, we divorced and he ended up letting the house go into forclosure. I was not on the loan therefore not responsible for the loan. But now, years later, I’m about to buy a house. Nothing is bad on my credit, but I’m worried when they do a title search I will have problems closing the loan because I was on the title of another home that my ex let go into foreclosure. Will I have problems getting my loan closed because I was on the title of that house back This happened back in 2006. I’m so worried about this.
I have similar scenario. What was the result? Could you be on the title and not the mortgage?
Hello. My situation is that my mother has passed away and now the house belongs to my father. My father is currently unable to work therefore I have moved back home and have been paying for the mortgage for a year now. I wish to make some much needed home improvements and would like to understand how either putting my name on the title or mortgage may help me to get a home equity loan. Future ideas with the house is to make the needed repairs to sell the house or to rent it out. I have never owned a house nor have I taken such loans from a bank or lender. I am completely open to any suggestions. Thank you.
My home mortgage is in my name only. I am on social security. If I were to end up in a nursing home, funded by SS, Title 19 would take all of my assets. Can I add my son to the deed or title, (not the mortgage) so that should this happen, he gets to keep the house, provided he can make the payments?
To Irene. I would strongly advise that you get counsel from an attorney who SPECIALIZES in Elder Law also well versed in estate planning. I have the same interest for my own son, having gone through this with my mom- asset protection for her family done legally and by the book so she is still eligible for benefits. Medicare Insurance that you have with SS does not cover long term nursing home care. Unless you can afford $8K a month or whatever a nursing home in your area is, you will need Medicaid. (Also not all nursing home beds are Medicaid-approved, and most are sh—y, but that is another issue) Medicaid has a five-year look back on gifts prior to you/the person needing the care, being eligible for benefits. It is complex and very specific. Putting your kid on the title is a gift of equity to him, and you can’t remove yourself if you have the mortgage. You can’t quitclaim to him 100% if you have a mortgage. So it is a percentage/partnership, but still the equity gift (via quit-claim) has to be done 5 years in advance of you needing benefits. Some states, in reviewing Medicaid eligibility, look at things like this very carefully and determine ownership (meaning is it really your asset or his) by who is actually paying the mortgage. SO TALK TO AN EDER LAW ATTORNEY!! Medicaid does not want to give benefits to people who have given their assets away as a way to protect them. They will look for any missteps and noncompliance with their rules You need to be careful to do this correctly, to not do fraud, to leave assets/early-inheritance for your kid/family etc, and have yourself still be eligible for benefits if/when you need them. Good luck.
Hi my partner and I have been living together for 7 years. But he has a mortgage but I don’t but I am registered with living with him and our 2 small children. Does this mean I will be on the land deeds register or not. Am I entitled to anything from the sale of the house if we were to split up
Mary,
Where do you live? That might change the perspective, but if you live in the U.S., being registered that you live with him may not mean much. He owns the property and presumably owned it before you were in the picture. He is also the only one on the mortgage. Your children (assuming they are also his) might have a claim on the property should they die, but unless you have a recognized common law marriage, you probably wouldn’t have a claim on the property.
The way to solve this is by creating documentation (like a will or a trust) that names you as the heir or beneficiary should anything happen to him.
Good luck,
Ilyce Glink, Publisher
ThinkGlink.com
Hi,
I live in FL and is not married. I wanted to know if I add my name only under the home title and not mortgage and that my boyfriend is under the mortgage, will I be eligible for FHA loan later down the road if I decide to buy a home. Scenario if that question is a yes, I am eligible for FHA, but we got married, does that credit apply?
also, being that I am pregnant, I was eligible for medicaid, will that have an effect if put my name under the home title?
Thanks in advance!
I am married and we purchased our home over 8 years ago, I am not on the loan but want to ensure I add myself to the title. Do you offer this type of service? I stumbled on this website and was unsure of services. Thanks!
Hi Ma,
Think Glink doesn’t offer those services. If you want to be added to the title of a piece of property, you’ll need the owner of the property to add you via quit claim deed. You’ll then need to file the quit claim deed with the local recorder of deeds, which puts the world on notice that you are an owner of the property. For more details, speak with a title or escrow agent.
Thanks for your comment,
Ilyce Glink, Publisher
THINKGLINK.com
My father had a stroke and is bed ridden. He wants me to change his house title to my name. The house is paid off. Are there any responsibilities or fees I need to know about before agreeing to this. I’m not financially stable and worried I might be making a mistake. Thank you.
I have bought a house in 2005 with my spouse. She is on the mortgage and I am only on the deed! divorced in 2010 and she quit claim deeded the house to me so I could do a modification as she has another house that she was doing a modification on and we could not do two at once. Now I am going through foreclosure and she has filed bankruptcy. does her bankruptcy cover me for any deficiencies? I do not see anything on my credit report (754) for this house do I need to file to protect my self? hoping not!
I’m on the deed, not the mortgage. Just my wife is on the deed and mortgage, can I still go out and purchase a home on my own and finance it myself even if I’m only on the deed but not financing are home?
Hi my name is on the title and his is on the deed I thinking about a divorce what are my rights
Carolyn,
The title and deed should be one and the same. If yours is on title, then you are an owner of the property. If he is on the deed, he may also be an owner. If you’re thinking about a divorce, please consult with a divorce attorney who can help you sort thru who owns what in your state of residence.
Ilyce Glink, Publisher
ThinkGlink.com
I bought a house in 2004 with then my fiancé together for 20years. In 2012 we separated. I am on the deed but not on the mortgage. In 2012 he signed a cease and desist to the mortgage company. He stop making mortgage payments. The house was heading into foreclosure. I moved into the same house with our children and paid up the months and have been paying on the mortgage for the past 7years. He now has a new family and wants to purchase another home. This mortgage is still in his name only. I can prove that I have made the payments for the past 7 years alone. Will the mortgage company allow me to take over the mortgage in my name only? He is willing to sign his name off the mortgage and the deed. Can this be done with the mortgage company directly. I’m not looking to refinance or pay closing cost with any lender. Please help…
Hi, I’ll hoping you can answer some questions. My husbands name is on the mortgage . When he was diagnosed with cancer we did a quick deed and added me to the deed. He has since passed and I filled out assumption papers. Am I doing the right thing. What happens if I’m not approved for the mortgage. From what I understand as long as I pay the mortgage on time I can continue to live here. I have a nine year old and am scared. Thank you.
You don’t need to be approved for the mortgage. You’re the wife and the lender should automatically allow you to assume the loan. Please talk with a real estate attorney if you don’t feel everything is proceeding smoothly.
Ilyce Glink, Publisher
My x-husband bought me a house to get away from where I was at. So he got me an my kids a place so we would never have to worry about a place to live. I am on the deed but no montage which is the best for me. Now if he ever gets to where he doesn’t want me to be there I don’t think he can make me leave but what happens if he does or stops paying the montage? Or can I make him still pay for the house an let me still live there? What will happen? Can I make him move out an still pay for house or not what would happen?
I would like to know the answer to your questions too as I too am thinking about this, as I’m being asked if I want to be on the mortgage or not but still on the deed.
Liz,
Being on the deed is great. Not being on the mortgage means you don’t have legal responsibility to pay it. However, if your soon to be ex-spouse stops paying the mortgage, you’ll have to pay it or risk having the property foreclosed. Also, and I should have said this to Rebecca, if your divorce agreement provides that your ex will pay for the mortgage for a certain period of time, you should try to make sure the loan is paid off by the time he stops making payments. That way, you’ll only have to pick up the cost of real estate taxes, insurance, and maintenance instead of all that plus a mortgage.
Ilyce
Rebecca,
If he bought you a home, then you own the home. So, he can’t kick you out. But if there is still a mortgage on the property and he stops paying it, then you have to pay it. If you don’t, then the bank will foreclose on the property and you’ll get kicked out.
I’d make sure to understand what your divorce agreement said and what your ex-husbands responsibilities legally/financially. It’s possible that once your children (with your ex) are grown, he’ll stop making payments and you’ll have to then pick that up, or sell the property and use the resulting equity to buy something else.
Here’s the point: Take charge of your financial life. Don’t leave this to chance or you could wind up in real trouble.
Ilyce
Hello I have a question I went to the county assessors office recorded change of name on the deed to solely me almost 9 years ago. The mortgage is in my uncle’s name, I’ve been paying the mortgage, paying property taxes and insurance out of my account for almost 9 years my uncle passed away last year. I just got done remodeling the entire house the way I wanted it. I would like to know what are some of my options to get it in my name he has a outstanding rate and mortgage payment on the house I don’t want to mess up but I also don’t want anything to happen. I live in California my uncle had other kids and brothers and everyone wants me to have it. Thanks in advance for your help & recommendations.
I have a question about a mortgage and a quit claim deed. My mother is gravely ill and is not expected to live to much longer. I have lived with her since 2013. She still owes about $70,000 on the house and is up to date on the payments. She plans on leaving me the house when she passes, however my credit is not good enough for me to receive a mortgage. My question is, what steps do we need to take now so that we do no lose the house when she passes.
I have a second property with a joint mortgage that is rented and i am now looking to sell asap. Due to capital gains tax we have been advised to put our spouses on the deeds.
Do we have to put them on the mortgage as it will be sold in a couple of months?
Can the lender insist on this and is this law?
Also at what point do you pay stamp duty?
All i want to do is change the deeds from 2 to 4 and sell the house?
Jane
My 91 year old dad is planning his estate. His wiis that nothing go through probate. he has already made his bank accts POD to me and wants my name on the deed to the house jtwros. I do not want my name on the note. In Texas do I assume this is ok with the lender? Do I need to sign the mortgage to show I recognize the debt on the house or just be added to the deed?
Thanks
My dad wants my name on the deed so when he passes it wont have to go thru probate. There is a mortgage. Can we put my name on the deed designating Right of Survivorship without me have to sign onto the promissory note and have liability for the mortgage loan. I do not want to have to pay his mortgage, I simply cant afford it. What scares me is if i’m on the loan and he cant or wont pay the mortgage I will have to and would not be able to sell the house or get off the note.
The plan is that when he passes i clean up the house and sell it. He has set up his bank accts POD in order to keep paying the mortgage and bills while waiting to sell.
Thanks
Scott
so sorry, didnt see this posted.
My fiancé bought a house when we were together. My name wasn’t put on the loan but it is on the house. Couldn’t add my name due to credit issues. If we separate can he make me move? If he sells the house do I still have to move or does he have to buy me out?
My, now ex-husband, and I bought a house. Due to a nasty divorce we short sold it through an auction house. Since the market was plummeting and to sell it quickly we were talked into taking $50k of the house sale and making payments on that until the payments were complete. For example….due on the house. 450k…house appraise for 400k….new buyer and bank willing to take 400k but we have to pay the 50k in order to short sale.
It has been 8 years and I have paid my half. My ex cannot pay his half due to other commitments. The bank has said they are willing to do a short pay but they need to do an inside appraisal on the home. Since we haven’t lived in the home for 8+ years, and do not know who does, we can’t get in the home. According to the bank we still ‘own’ the home which I’m sure would be quite a surprise to the actual homeowners if they tried to sell it or re-finance. Not sure what to do.
We are 4 parents on the deed but mortgage only under 2 partner name, to avoid so much paperwork and delay, it’s a investment property. Now the problem is in tax return only 2 partner will get the tax benefits on interest payments, but investment is equal by all 4 partner, the other 2 will not get benefits as they are not on mortgage
Any suggestions how to deal with it
If a name is on the title of a home, but not the mortgage, does it show on a credit report?
Hi Wendy,
If your name isn’t on the loan, it won’t show up on your credit report. That’s because the lender will report the payments for the people named in the loan (with their social security number as a tie-in to make sure it’s the right person).
Hope this helps.
Ilyce
Hi Ilyce .
My father recently passed away, he had a mortgage and ended up taking himself off title and put me on it.
I now hold title and it read as “[My Name], a married man as his sole and separate property”.
My father is now only tied to the mortgage. I’m making payments while I move his stuff out of the home.
There was no will.
There are no other next of kin (never married and I’m an only child).
There are no liens on the home.
The only debt he had was a credit card with Wells Fargo and I already closed it (Along with his checking account).
He has a 401(K) and that is in process of getting paid out since I was added as a beneficiary on that account.
I live in California and the property is located there too.
One of his neighbors already offered to buy the property “AS IS”.
I have ZERO desire to live there and I don’t want to put too much money into it since I don’t know if I can sell it after the upgrades plus the land/rent value in the area isn’t that high so this seems like a good idea to take the neighbor’s offer.
*** QUESTIONS ***
When it comes to renting out or selling the home will I have a problem (Since I’m on title but not the mortgage)?
Do I need to make the lender aware of my father’s death? I’ve heard no because all they care about is the mortgage getting paid.
I’ve heard of the whole probate thing but I thought that was mainly for way more complicated scenarios than this. Do I still need to go through that process, if yes, is that through the courts?
Any help would be greatly appreciated.
Thank you so much for your time.
basic question. I am divorced, ex lives in home. we are still on good terms, but he lives in the home and agreed financial responsibility via divorce papers. He cannot get a line of credit because I am in school and only work part time. the bank will not extend credit. He wants me to take my name off the mortgage. I am concerned that my name will be taken off the title as well and im not willing to let go of my interest in the property. Is this possible? take my name off the mortgage but keep my name on the title? we live in Or.
HI,
I have a question about Homestead. We just purchased a home together, I am not on the Loan but I am on the title. My Fiance
has another home that he Homesteads in another town because he spends more time there. Am I able to homestead the house we just purchased if I’m not on the loan? We live in Texas.
Thank you.
The loan is under a co-signer a friend due my credit not to good and I am on title he signed a quit claim deed about 10 yrs ago what legal rights does he have towards the house
I am soley on title/deed but not mortgage – ex holds mortgage soley…….house in foreclosure 10 yrs, can I sell the house for my own benefit? Had PMI which should have paid the bank; so………………………….
good afternoon i still have my brother on my house title but he is not on the loan as its my house what are the procedures to remove him thankyou veronica
Veronica,
You can’t really remove your brother from title. He has to sign a quit claim deed. If you are selling, and he refuses to sign because he thinks that he is getting money, you tell him you’ll settle up at the closing.
And, about the closing: Keep track of all of the expenses you’re spending. You can then “bill” the cost of those expenses to be subtracted from the gross amount, before the “profit” is shared.
Best,
Ilyce Glink, Publisher
ThinkGlink.com
I have a question. The title of the house is under me my mom and my sister, but the mortgage is under my mom and sister. My sister moved out 4 years ago so me and my mom ended up paying for the mortgage. If my sister wants to get her share from the house. Will it be distributed equally between the 3 of us?
Rov,
If your sister is on title, then she will get a share of the property’s profit when the home is sold. But if she hasn’t contributed to the upkeep of the property or the mortgage in the past 4 years, then it’s fair to subtract what would have been her share of the costs from her share of the profits. Be sure you explain this to her ahead of time, so that she understands and you don’t wind up with a family nightmare – money isn’t worth killing a good family relationship.
Good luck,
Ilyce
My husband passed 6 years ago he was on the mortgage, I am on the quickclaim deed I have continued to pay mortgage payments, all taxes
And insurances . I was scared to contact
Mortgage company to assume loan due to poor
Credit. I need to refinance as the house needs work What happens if I don’t qualify for the
Loan assumption? Can I add my adult children on the quickclaim deed as they have good credit?
Will this save my family home?? Please advise
Christie:
If you co-owned the property with your husband when he was alive, you likely inherited whatever part of it you didn’t own when he died. I say “likely” because it’s possible that some other legal document (like a will) might have come into play. You should speak to an estate attorney and see what he or she has to say about your situation.
Typically, when a spouse dies, the remaining spouse would be able to take over the mortgage (as you have done) and the mortgage company would simply put the mortgage into your name. There was no reason to be afraid when making this call, as long as you can prove that you were the intended owner of the home. By that I mean, you have a copy of the will or you owned the home with your spouse as joint tenants with rights of survivorship.
Before you take the rash step of filing another quit claim deed, please talk with an estate attorney.
Good luck,
Ilyce Glink, Publisher
I have a question. My partner and I (two guys) we currently love in Virginia and we own a townhouse together with both names on the mortgage. recently he got a wonderful job offer to move to tampa florida.. so that means putting our current home on the market and buying a new place in tampa.. im a bit afraid because for me to make this move means i am giving up my job and income until i find new work in tampa. I know he is going to be able to get a mortgage on his own since i wont be employed.. i guess im trying to ask what are my rights with regards to having some sort of equity in the home if im not on the mortgage but im contributing to the expenses, am i giving up my tax deductions by not being able to obtain a new mortgage together, how do i get my name on the deed if there isn’t a mortage in my name
thanks for your help in advance
Marco,
You and your partner co-own this property and when you sell it, presumably you’ll both put cash toward the down payment on the new property. There’s no reason you two can’t own it together, even if he is the only one listed on the mortgage. But, likely, you can both be listed if you like. One way to make this happen easily is to get married. Often, one spouse will work and the other will not but both are listed on the mortgage and title. You can also own the property as joint tenants with rights of survivorship.
If marriage isn’t on the docket, you can sign a partnership agreement (business, not personal/relationship) that will spell out who is contributing what to the arrangement.
Please see a real estate attorney and figure out how you’re going to handle this before you go. And, good luck. I hope it goes well for you there.
Ilyce Glink, Publisher,
ThinkGlink.com
My husband and I are looking to purchase a property as co-owners with my parents. They (my parents) will be contributing a larger portion of the downpayment, and we (my husband and I) will be obtaining the mortgage. My understanding is that my parents can be put on the deed even if not listed on the mortgage. How would we go about doing this? The money toward the house IS NOT a gift, so we wanted to be sure they didn’t get hit on taxes for contributing more than the $30K allowed as a gift toward mortgage. So, my questions are: How can they sign the mortgage deed but not the note? Would you advise that they be put on the deed as a non-borrower at closing?
Erin,
Why don’t you consider officially borrowing the funds from your parents? If you get a second mortgage from them for some of the funds, they can forgive the loan at a rate of $15,000/year (or, whatever the gift amount is per person) for each of you. So, if you get a gift of $30,000 from them and borrow another $60,000, and they choose the forgive the loan over two years, there is no need to add their names to the title of the house. It’s a lot cleaner that way. And, if they don’t want to forgive the loan, you can the repay it over a specific term at a specific rate of interest.
That last point is important, BTW. The IRS will want to see a real rate of interest charged. The good news is that interest rates are extremely low right now, so you can easily put in an interest rate of 2.5% or 3% and fall within IRS requirements. Please see an attorney to draft up the note.
Just make sure this doesn’t run afoul of your mortgage approval.
Good luck,
Ilyce Glink, Publisher
Hi there. My situation is this, back on 2012 me and my wife bought a townhouse, but because i didn’t work that time i didn’t even get approved for mortgage, so my wife got approved for it and bought the townhouse, but our both names are on the title of the house. So now we ordered brand new house and we want to sell the townhouse to move to the new house. My question is: can i be a first time buyer for this house, as i was on title till now on the old townhouse but not on mortgage as i didn’t get approve for it. Thanks
This looks like the perfect place to ask my question! The house my wife and I our living in has been “owned” by her grandmother for approx.15 years. At the time of purchase my wife was put on the deed (not mortgage) along with her grandmother. Recently she got behind on mortgage payments (which we caught up) and she agreed to sign it over solely to my wife using a quitclaim. Here it is a month later, now she went and filed for chapter 7 bankruptcy. My wife and I have lived in the house for about 5 years and have been paying her grandmother “rent” but apparently She didn’t always pay the payment. There is significant equity in the house and im worried we will end up losing it. I’m terrified our three kids will lose the only home they know. Any advice?
My husband died in November and he alone is on the mortgage, but i am on the title of the house. He had no will. I got confirmed successor in interest by the mortgage company. What does it mean when they said unless you assume the mortgage loan obligation under state law i’m not liable for mortgage debt.? my credit is fair but i have school lone and i guess I cant finance the house. I was left nothing no money no job i took care of him he was a disabled vet, can i just let the house go into foreclosure and move and not be liable for the mortgage?
Hi there, I asked my husband to have his older son to be as a co-signer just to make us be approved for the loan to be able to purchase the house. We got the house back in 2017. After one year convinced my husband to add my name on the title. My husband still insists to keep his son on the mortgage even thought he has his own place with his wife. I asked my husband to refinance the house to add my name in the mortgage specially my husband is 63 years old and has heart disease plus I have been married to him for 12 years and we have two boys 11 and 3 years old. My husband does not want my name to the mortgage. What should I do if some thing happens to my husband. Will the lender give the house to his son or what would be the situation? Please let know because I need help.