How can we rent a house that we have the mortgage for?

Asked by denna_engel, Alamogordo, NM Sat Jan 12, 2013

Weird question, I know. Here's our situation (for New Mexico):
My husband and I are moving there for his job on an Air Force Base, and we'd like to buy a house. However, if we rent a place, we can get some help with our bills. So my grandparents agreed to cosign on a loan and then make a rental contract with us. The mortgage would be paid from their account after our monthly rent payments go to them. If I am the primary on the loan, does that mean I HAVE to have my name on the house? Is there a way to do this that keeps my name off the deed, and only on the rental contract even if I am the primary on the loan? Is it possible to make a rental contract and keep my name ONLY as a renter and not an owner?
Any information is appreciated!

About us:
First time home buyers
Young Military Family (German Air Force)
Able to put down $10,000 (should be about 5-7% in that area)

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Answers

2
Shanna Rogers’ answer
Shanna Rogers, Agent, Murrieta, CA
Sat Jan 12, 2013
Hi denna_engel,

You need to consult a Real Estate Attorney.

That said, I think you have to have your name on the Deed since you are doing the loan. However, once it's recorded, you can Quit Claim the Deed to your grandparents to take your name off the Deed and you would still be on the loan. However, are you sure you want to do that? What if something happens to your grandparents? What would happen to the house then? Would you lose the house to someone else in your family (or have to 'split' it with others in your family)? You would still be responsible for the loan and may end up not having the house. There are many possible negative scenarios that could happen (may not but you never know - I've heard horror stories). This is why you should consult an Attorney.

Shanna Rogers
SR Realty
http://www.RealtyBySR.com
0 votes
Leigh-Jo Anz…, Agent, Albuquerque, NM
Sat Jan 12, 2013
Hello Denna,

No, it's not a weird question. To keep your name off the title, you would need to be off the loan and just have your grandparents buy it in their name.

Feel free to give me a call, text or email and we can explore all of your options in more depth.

Leigh-Jo
Syan Real Estate
Call/Text: (505) 730-8181
Web Reference:  http://www.Syan.com
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