NMLS # 6395
Financing Kentucky One Home at a Time
We do these types of transactions all the time. FHA financing is perfect for your scenario. You may all may be on the loan and title of the property even if some of you may not occupy the property. Contact me for further detials!
It is possible to get a loan, but there are many logistical factors. Does it make sense as a primary residence for all individuals to live there? If you are all going on the loan, all your income, debt, credit history will be examined. Bigger question is, do you need to put all those individuals on the loan? You could try qualifying for the loan with only a few siblings to make the loan scenario make more sense, from an underwriting perspective.
First Capital Mortgage
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- Is this for use by your family or an investment?
- Do you require a loan in order to purchase?
- Will this be an equal partnership?
- Have you prepared an agreement with your siblings regarding each partner's shares and rights?
Once you have those expectations sorted out (and your budget in mind) then you can structure a purchase accordingly. And, of course, your ownership structure may depends on what type of home you're planning to buy (a single family dwelling, condominiums, multi-unit buildings, for example). In the meantime, take a look at some commentary from local attorney Andy Sirkin. He's a leading legal practitioner in this area.
Hope that helps!
Kevin K. Ho, Esq.
Broker Agent | Vanguard Properties | Attorney at Law
Google Voice 415.889.9918
The short answer to this question is, absolutely. As has been mentioned several times it is really about how you want to structure it that will be the tricky part, but of course you can all buy a house together.
If you would like to discuss it in detail, my contact information is below:
Cheers and the best of luck!
Buying together is a nice thing, but it could turn out to be a huge problem later if one has a financial problem or decides to get married and wants out.
Best of luck.
All income and debts will be combined/mixed together to determine the total debt to income ratio, each person's credit will also have to meet minimum requirements (score & credit history), however the down payment funds can be brought in by any single person (or multiple people) on the loan (i.e. not everyone has to contribute to the down payment requirement). If it's being purchased as a primary residence or second home then the down payment funds can even be a gift, but if it's a rental property gift funds aren't permitted.
I can't imagine why you couldn't. But Jim makes a point. If there is an issue, it's likely with lending. Please contact Natasha Lovas at NLovas@gmwest.com She should be able to answer that question.
The only other issue could be the size of the house and the number of bedrooms. There are occupancy rules about how many people can live in one place, so six of you couldn't buy a one bedroom to live in. Although, if you are buying as an investment (not to live in), you could buy a one bedroom.
Let me know if you have any other questions.
Zephyr Real Estate
I've never dealt with this many people buying a house, but we have dealt with a group buying a multi-unit building. As Jim pointed out, you can add people to the deed fairly easily either during the escrow process or after (sometimes this requires lender permission), but it will depend on lender guidelines and your individual credit/debt/income scenarios.
I would recommend talking with a few lenders and figure out the finances before you start looking. If you would like some referrals we have some great lenders we deal with. Contact info is below:
Lance King/Owner-Managing Broker