Adding Partner to Loan and Title in Refinance

10 Replies

Hello BP!


I have a silent partner on a property that I own solely and am simply wondering what steps are involved in getting him added to a new loan, as well as, Title in a refinance. While also removing myself from both. Essentially we would be looking to swap ownership in the property through the refinance, with me cashing out. The cash-out amount would be a separate agreement between us, aside from the refinance.

I'm really just trying to wrap my brain around the logistics of how he'd be added to both the loan and Title, while simultaneously removing myself. I'm probably overthinking a simple answer, so any insight is appreciated!

Thanks!

Mikael, 

Your partner would need to apply for a mortgage themselves and be approved for it; mortgages cannot typically be assigned, the borrower needs to be approved take title & then give the mortgage to the bank. Does your partner have good credit? Do they have the income to qualify for a mortgage? If they do, the simplest thing to do is to simply work out a price & complete a private sale of the property. If they do NOT have the ability to qualify for a mortgage you can add them to title by deeding part of your interest to them & creating a note whereby they are responsible for paying the mortgage payments on condition of reversionary interest (this means that if they do not pay you, then the interest that you granted them reverts back to you). I hope this helps!!!

Thank you all for the advice. He would definitely qualify for a new mortgage, so perhaps refinancing would be the way to go, as it's a new loan. Just selling to him is also an option, as well. We're just trying to work through all possibilities. Thank you all again!

He can NOT refinance your loan when he is not on title. It is called a sale. You are selling the property to him. You can get the money and give him half or whatever you want to do with the money, but it is called a sale. The bank or mortgage company will say that you are selling the property. Pure and simple. It does not matter what agreement you had or have, you are selling the property to him.

If you are NOT taking your name off title, you can just tell the bank that you are adding your partner to title. OR you can record a new deed gong from your name individually to both your names. This way you are both on title. NOW go to the bank for a refinance. They will look at both your credit and backgrounds. Just file a new deed.