Joint Owner Bank Account

8 Replies

Hey guys,

I am trying to purchase a property with my brother (jointly) and was hoping to put him as a joint owner to my account (so he can use my finances) and then have him buy it under his name. The reason is that I would still like to exercise my 1st home buyer benefit (3.5% FHA) but I don't want to miss out on a partnership with him. So the question is: Can I simply put him as a joint owner on my bank account and he can use my money for the down payment? One mortgage lender told me that that it is perfectly fine but I wanted to check with the experts here. I'll worry after closing about setting up an LLC with him or however we want to split it.

Let me know your thoughts and thanks in advance

Originally posted by @Georges Arnaout :

Hey guys,

I am trying to purchase a property with my brother (jointly) and was hoping to put him as a joint owner to my account (so he can use my finances) and then have him buy it under his name. The reason is that I would still like to exercise my 1st home buyer benefit (3.5% FHA) but I don't want to miss out on a partnership with him. So the question is: Can I simply put him as a joint owner on my bank account and he can use my money for the down payment? One mortgage lender told me that that it is perfectly fine but I wanted to check with the experts here. I'll worry after closing about setting up an LLC with him or however we want to split it.

Let me know your thoughts and thanks in advance

Somebody else correct me if I'm wrong, but I believe the FHA 1st time home buyer benefit is intended for Owner Occupants, not investors. So this might be workable if you're going to buy a multi-family and live in part of it, but not for a general investment property.

Your lender will know best. But just so you know, FHA is Not only for 1st time home buyer, simply that the property is Owner Occupied (primary residence).

You can find 3% down with conventional financing..typically a little more strict on lending guidelines but if your whole idea is low downpayments you might want to look into that...recent change as of December I believe.

Thanks guys for the responses. @Linda Weygant

I don't think it works like that ( i wish it did). Hence, why I am trying to put the house under my brother's name so I can still use the FHA and move to that house (I don't currently like living in my current property). It becomes MUCH harder to get an FHA loan if you already have 2 houses under your name (currently have one that I live in and one that I am trying to buy as investment).

My question is still unanswered though regarding the joint owner.  @Wayne Brooks

 I am getting mixed results from different mortgage lenders.

@Georges Arnaout Did you ever figure what to do about your joint account? Im looking to do the same thing but still unsure on what to do. 

@Michael Swope I ended up doing a joint account and using the funds from both but we had to put 20% down as we decided not to live in it and take an investment loan.  Hope this helps...

investment loan