More families are buying homes together. Parents help adult kids get into a house. Adult kids buy a home with room for Mom and Dad. Two households sell and combine into one. It makes a lot of sense, but it raises a question most people haven’t faced before: whose names go on the loan, and whose names go on the deed?
Those are two separate things, and they don’t have to match. I’m not an attorney or a lender, so the right answer for your family should come from them. Here’s how I explain the basics so my clients walk into those conversations prepared.
The loan and the deed are different
The loan is about who is responsible for paying the mortgage. The deed is about who owns the home. Someone can be on the deed without being on the loan, and your lender and closing attorney will have rules about how that works.
Who goes on the loan
When more than one person applies for the mortgage, the lender usually looks at everyone’s income, debts and credit. Adding a parent or adult child as a co-borrower can help you qualify for more house. It also means every borrower is responsible for the full payment, and the loan shows up on each person’s credit.
Some loan programs have options for counting income from other people who will live in the home, and many allow family members to give gift funds toward the down payment. The rules vary by loan type, so ask your lender early which options fit your situation.
How to hold title
In Georgia, two of the most common ways for more than one person to own a home are:
- Joint tenancy with right of survivorship. If one owner passes away, their share goes to the other owners, usually without going through probate. In Georgia, this has to be clearly stated on the deed.
- Tenants in common. Each owner holds a share, and the shares don’t have to be equal. If one owner passes away, their share goes to their heirs or follows their will.
Some families also use a trust. Your closing attorney can walk you through which option fits your goals, and an estate planning attorney can help you think about the long term.
Questions to talk through as a family first
- Who is putting money into the down payment, and how much?
- Who is paying the monthly mortgage, taxes and insurance?
- Who pays for repairs and improvements, like finishing a basement suite?
- What happens if someone wants to move out, or the house needs to be sold?
- What happens if one of the owners passes away?
None of these are fun to talk about. Putting the answers in writing now, with an attorney’s help, protects the relationships along with the investment.
Bring the right people in early
The families who have the smoothest experience talk to a lender and a closing attorney before they start touring homes. We work with lenders and attorneys who help family buyers often, and we’re happy to make introductions.
My family has shared a home with my in-laws since 2003, so I know how much it means to get this right. If you’re thinking about buying with family, call or text me at 770-490-6434 or email [email protected].
Learn more about The Suite Life, our approach to helping families find homes with room for everyone.
This article is general information, not legal or financial advice. Talk with a licensed attorney and lender about your specific situation.
