Co Owing Property with your child

[Chuck A.]

I am looking to buy a house for my son who is in college.  The mortgage + utilities is a lot cheaper than the dorm and the property is in walking distance from campus.  Even though I own my own my home, I would like to buy the new property as an "Owner Occupied" property to leverage a better bank loan rate and get homestead exception on taxes.  

I am not even sure if this is even possible,  but my thought is to make my son a co-owner of the property as he will live there (even though I will finance the property) . 

Any thoughts or strategies on this approach ?

Thanks !

[John S. Kennedy]

Forty years ago I was the "son" and I did just this while in med school in Philly, purchasing a rowhouse, and I collected rent from 4 classmates, all good friends, and it more than covered my living expenses.  As a med student i had no income.  The house was titled in my name, and my father co-signed.  The down payment was split 50/50 with my father, and when I sold it 5 years later we split the profit.

Last year, now as the "father" i co-signed for my son to buy a duplex in Charleston, that was out of his range without help. The difference here is that my son is employed and earning some money already. The house is in his name, and is being signed over to an LLC.

Basically, I strongly encourage you to follow through.  If your son can find roommates, assuming other bedrooms, it's an even better deal.  Any rent rate that beats the dorm cost will be an easy sell.