How to take title

who2tedJune 17, 2014

We are selling our current house and moving closer to family. Our daughter is willing to invest 50/50 in a home in the neighborhood of $200k. She would put $40,000 down, we would put $100K down and she would mortgage the remaining $60K. That would leave us with a good additional sum in the bank. Can the financing be in her name and title in both of ours. Maybe form an LLC? Trust?

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rrah

Look into forms of joint tenancy and tenants in common. Yes, the financing can be in her name only.

What often happens is one person secures the loan and buys the property. At closing a second title is issued after the first. The second title is a quit claim deed that adds all names on the title.

The tricky part here is you are putting down a substantial amount of money into this house. They will impact the loan as I suspect it will be too much to be considered as a gift for the loan purposes. Talk to an attorney AND a lender as to how to proceed here. You may need to form an LLC.

    Bookmark   June 17, 2014 at 5:07PM
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ncrealestateguy

Nice explanation rrah.

    Bookmark   June 17, 2014 at 8:55PM
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beaglesdoitbetter1

Either a trust or put the house in the daughter's name only. If you/your spouse ever need to go into a nursing home and the house is titled in your name(s) then the house could be lost if you run through your assets & need to have Medicaid pay for the home (Medicaid planning is a big issue, and anyone can run through assets VERY quickly w/ long-term care costs).

    Bookmark   June 21, 2014 at 11:31PM
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