Starting out in a community property state

[Abraham Orozco]

Wanting to buy a house with my brother to start acquiring houses. He is able to move every 12 to 16 months. He will be living there as he rehabs the property.

I am married, and my wife does not want to have anything to do with acquiring more debt or me being in another mortgage and I live in Arizona a community property state.

These are my questions.

How is a join account seen if is my brother me on it? Would my wife have to be involved if I'm not on the mortgage.

How long would the funds need to be there, to satisfy any lender requirements?

How big of a gift can he receive from me for a down-payment?

Any other ideas are greatly appreciated.

[Jason Taken]

Hi there,

It sounds like you're looking for some advice on how to navigate a complex situation with your brother and your wife.

First, let's address the joint account and mortgage issues. In a community property state like Arizona, your wife's involvement can be crucial. Even if you're not on the mortgage, your wife might still be affected because of the community property laws. It's a good idea to consult with a real estate attorney or a financial advisor who is familiar with Arizona laws to understand the full implications.

If you're considering a joint account with your brother, lenders will typically look at both parties' credit and financial situations. Since your brother will be living in and rehabbing the property, his credit and income will be significant factors. However, your credit could also be impacted if you're co-signing or jointly applying for the loan.

Regarding the funds, lenders usually require that the down payment funds be seasoned, meaning they need to be in the account for a certain period, often 2-3 months, to ensure they are not borrowed. As for the gift for the down payment, it's generally allowed, but it must be properly documented as a gift letter to the lender. The amount can vary, but it's typically subject to the lender's guidelines.

Remember, communication is key. Make sure you and your brother are on the same page, and it might be helpful to have an open conversation with your wife about the potential risks and benefits.

[Jackson Harris]

Quote from @Abraham Orozco:

Wanting to buy a house with my brother to start acquiring houses. He is able to move every 12 to 16 months. He will be living there as he rehabs the property.

I am married, and my wife does not want to have anything to do with acquiring more debt or me being in another mortgage and I live in Arizona a community property state.

These are my questions.

How is a join account seen if is my brother me on it? Would my wife have to be involved if I'm not on the mortgage.

How long would the funds need to be there, to satisfy any lender requirements?

How big of a gift can he receive from me for a down-payment?

Any other ideas are greatly appreciated.

 Hi Abraham, all good questions! Sending you a PM would be happy to let you know what we've done in some of my experiences.