Two names on loan and deed, but one pays all bills. Equal owners?

4 Replies

I am going to start out by saying I know this is a bad idea. Unfortunately my girlfriend is not as logical.
I have just been denied on a loan after having pre-approval and making it close to closing on a home. The lender didn't understand that mine and my co-signers (my mother) income were both from self-employment and after he found out a couple months after giving him all this information and being approved, we were called and told he can no longer go through with it.

Needless to say, my girlfriend is very upset as this was going to be a primary residence for us to start a family (as well as a location for my personal training business). She is now trying to get a loan for herself with me cosigning for this property. Regardless of the fact that it likely won't be approved, it is just a bad idea if it was approved.

Here are my concerns and questions: No-one ever knows if their relationship will last 30 years. and I don't want to be in a 30 year contract with a significant other. She has little income, so I would essentially be paying the entire mortgage, insurance, taxes, etc... while she helps with utilities. I was fine with that when I was going to be the primary owner with my mom as the cosigner. But I am skeptical of paying off a house that isn't primarily mine. 
If things went south with the SO, would I have any extra rights to the ownership of the house if I am able to show proof that I have been the "breadwinner" and paying for the house mostly on my own? Or do I still have 50% or less interest in this house?

The only scenario where I would consider this is if, by paying most of the bills, I am entitled to most of the interest/equity. (Believe it or not, I'm not stupid enough to enter into a contract with a SO without a backup plan)
Thanks, guys and gals.

Thats not how it works .    You could be the only one on the loan , and paying the bills , if both on the deed , its a 50/50 split . 

Start a family and that doesnt work , and you are still paying for a house and not living there , plus child support . 

Some states have common law marriage , after so many years and kids , they could consider you married .

Safest thing ....................stay single and keep it zipped up 

@Jacob Barnhart

{Note:  I am not a lawyer and I do not even own a TV ;-) }

If you purchase the house as Joint Tenants (which is how most couples would purchase their primary residence), then you jointly own the house.  If one of you were to die, the surviving spouse would retain ownership.

If you were married, your spouse would be entitled to 50% of the "marital home" regardless of who paid what - that is just part of throwing your lot in together.

Depending on the status of {marital} property-law in Oklahoma, common-law partners may be viewed the same as married.  You could look at a prenuptial {like} contract, but there is a possibility it would be subservient to the marital property law.

Now, if you purchase the house as Tenants in Common, you could define the portions or ownership at the time of purchase (i.e. 50/50, 60/40, 70/30, etc).  You would also layout whether each of you would require the consent of the other to sell your share to a third party {or whether that would be permitted at all}; whether each party has first rights if the other decided to sell; and the terms under which one "partner" could sell to the other.   This is not a common approach for acquiring a martial home and you should consult with an attorney on the pros and cons of such an arrangement and whether it would be deemed subservient to marital property law.

Sounds like you may have other questions beyond the house ... if you are already looking for an exit strategy now.

This could all be addressed in an agreement such as a pre-nup. Who is entitled to what could also be resolved via a lawsuit for sale in lieu of partition... but the agreement is certainly the easier path!

Better question is how she's going to qualify for the loan with no income.