I have a question for the BP knowledge base: my brother wants to house hack but doesn't have money for a down payment and may not qualify for the loan. I want to purchase a duplex but would rather not have to come up with the 20% down payment. Would it work for us to partner up? Say I put up the down payment and get the loan and my brother lives in the duplex for a year plus. He gets discounted rent and a small 1-3% ownership stake and I get into the duplex for less down. Does this work?
How would the mortgage work out?
Does he have to be on the loan for it to be owner occupied?
Does he have to be on the tile for it to be owner occupied?
Does the partnership sound fair?
Thanks for the help.
I think this sounds like a brilliant plan. Call a bunch of mortgage brokers to ask their opinion. My only concern is that sometimes the person on the mortgage, which would have to be your brother to get the OO status (I think), has to have seasoned money to use as the down payment. This might have relaxed in the past few years, but I'd definitely call a bunch of brokers to see whether this is possible. Sounds like a win win.
Free eBook from BiggerPockets!
Join BiggerPockets and get The Ultimate Beginner's Guide to Real Estate Investing for FREE - read by more than 100,000 people - AND get exclusive real estate investing tips, tricks and techniques delivered straight to your inbox twice weekly!
- Actionable advice for getting started,
- Discover the 10 Most Lucrative Real Estate Niches,
- Learn how to get started with or without money,
- Explore Real-Life Strategies for Building Wealth,
- And a LOT more.
Sign up below to download the eBook for FREE today!
We hate spam just as much as you
Join the Largest Real Estate Investing Community
Basic membership is free, forever.