House hacking and cosign with family member

House hacking and cosign with family member

Investor · Jersey City, NJ · Member since 2016 · 84 posts · 11 votes

Hello BP, I have a question on house hacking.  I have a family member,  who's single and looking to buy a multi family property (his credit is  670 but mine is better 790).  He has the down payment and closing costs money but may need help depending on property price.  Also, I would need to help him choose the property and run the numbers since he's a newbie.  My question is can I help him by being a cosigner for this loan while he's the primary owner occupant and will he still be able to only put 5% down?   I would be on the deed as well and we would also split any rental income 50/50 since I'm cosigning.  I want do to things the right way and make sure I'm following the rules hence my question.  Thanks!

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  • Investor · Jersey City, NJ · Member since 2016 · 84 posts · 11 votes
    8y

    Apologies it's a two family home not multi family he's looking to buy 

  • Investor · Jersey City, NJ · Member since 2016 · 84 posts · 11 votes
    8y

    Well that's true but he's putting in the funds and will be living there while down payment is low :) 

  • Rental Property Investor · Edison, NJ · Member since 2016 · 753 posts · 565 votes
    8y
    I personally would not do a deal with a family member because I would not want to risk losing the relationship if something goes wrong. If you do this I would consult a lawyer and draft a partnership agreement in writing so that you have both signed and agreed on all terms of your partnership.
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