Glendale, AZ · Member since 2017 · 1k+ posts · 236 votes
If I buy a house with my partner, lets say we buy a 300K house together.
How will lenders look at it down the road if I want to buy more rentals by myself?
Do the lenders look at the house that I am buying with my partner as:
1) The lenders will count 300K loan towards my Debt to Income ratio
Or
2) The lenders will count 150K towards my debt to income ratio (because I own only half the house/half of the debt)?
I am trying to avoid a situation when my debt to income ratio is too high to buy...I want to be able to qualify in the future and do not want the house that I am buying with a partner to cause issues getting future loans...
Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
8y
From what I've experienced, lLenders will look at the total debt your are responsible for. So if you give a Personal Guarantee with your partner on this loan, they will count the entire amount against you, regardless that you have a partner. Maybe you should consider putting the property in one of your names and the quick claiming the other on the title?
From what I've experienced, lLenders will look at the total debt your are responsible for. So if you give a Personal Guarantee with your partner on this loan, they will count the entire amount against you, regardless that you have a partner. Maybe you should consider putting the property in one of your names and the quick claiming the other on the title?
Thank you! how does it work ?
So lets say we buy it in my boyfriends name ( so title and mortgage in his name), then he quit claims part of the property to me? (So this way I am not on the mortgage but I am on the title?) Is that how it works?
From what I've experienced, lLenders will look at the total debt your are responsible for. So if you give a Personal Guarantee with your partner on this loan, they will count the entire amount against you, regardless that you have a partner. Maybe you should consider putting the property in one of your names and the quick claiming the other on the title?
Thank you! how does it work ?
So lets say we buy it in my boyfriends name ( so title and mortgage in his name), then he quit claims part of the property to me? (So this way I am not on the mortgage but I am on the title?) Is that how it works?
Exactly! So in that case, the loan will only show up on his credit report and not yours. However, you will both have ownership in the property (as well as the liability associated with liens resulting in foreclosure, lawsuits, etc.). I would get your intent in writing before proceeding however. It just makes things clear for all parties involved.
From what I've experienced, lLenders will look at the total debt your are responsible for. So if you give a Personal Guarantee with your partner on this loan, they will count the entire amount against you, regardless that you have a partner. Maybe you should consider putting the property in one of your names and the quick claiming the other on the title?
Thank you! how does it work ?
So lets say we buy it in my boyfriends name ( so title and mortgage in his name), then he quit claims part of the property to me? (So this way I am not on the mortgage but I am on the title?) Is that how it works?
Exactly! So in that case, the loan will only show up on his credit report and not yours. However, you will both have ownership in the property (as well as the liability associated with liens resulting in foreclosure, lawsuits, etc.). I would get your intent in writing before proceeding however. It just makes things clear for all parties involved.