Financing a Home with a Partner

[Jared M.]

Good day all! 

I have a question in the best way to go about purchasing a home with a partner. 

Quick Background:

Bob - would be 2nd home

Tom- would be his 1st home (willing to live in home as primary)

What would be some recommendations in terms of finding a loan? 

-Should Bob and Tom both get a loan together? 

-Since it's Tom's first home could he just put the loan under his name to acquire a FHA loan and then just put the title under both Bob and Tom?

Thanks! 

-Jared

[Hattie Dizmond]

@Jared M. The Trust is only for the purpose of holding title and - in this case - determining interest held in the property. I suppose, if you completed assumed name paperwork, you could operate in the name of the Trust. However, you wouldn't normally do that. I'm not a lawyer, so this isn't legal advice. (Required disclaimer!) If you are using a Trust, which clearly identifies who holds what percentage of beneficial interest in the property, you could get by with just writing up a simply agreement between Tom & Bob, filing assumed name papers and opening an account. However, if Tom & Bob intend to purchase additional properties together, I recommend they form an LLC and make everything clear. Plus, if you form an LLC, you can have it taxed as a Sub-S corp. That allows you all the protection of a corporation and all the tax benefits of Sub-S pass-through taxation. (Not a CPA either...just saying.)