We are planning on investing on a property with a partner and I would like to know if it's possible to have 2 separate mortgages on one property. My wife and I would like to stay with our current lender, and our partner would prefer to stay with her own lender.
A friend mentioned that as long as both parties are listed on title, then it should be possible.
Does anyone have any insight on how to make this happen?
Seems I recall 2 mortgages with the same individual (80/20 or 80/15/5) long ago to avoid PMI. This would be through the same lender.
As far as 2 individuals each with their own mortgage on a single property, how about through private lending? I've never heard of conventional lending allowing this but we never know until we ask them. If 2 mortgages are allowed from separate individuals, how would then each lender determine who is the 1st lien? I believe they (bank) would want to make sure each of them is the 1st lien holder, and that doesn't seem possible with 2 banks.
Have you run this by your lender since you would like to keep them and your partner wants to keep hers?
@Jeff C. My guess is both of you are looking to take out a 1st loan. In which case the answer NO. Both lenders would want to be in 1st position, which can't happen.
If you are taking out a 1st loan and a HELOC, then Yes, its possible. But usually this would with the same lender. The 1st position lender will not care with you get the 2nd some where else. But the 2nd position lender might
@Jeff C. I doubt that would work. Remember that banks want to be first in line in the event of a default. What it appears you are asking is the banks share the total loan equally, which will not allow them both to be first lien.
Talk to your banker, but I doubt that they will like that idea. It also might be hard to get a loan with your partnership, unless you go with a commerical loan (as opposed to a residential loan in your personal names).