Contact an attorney to draft a trust where you all share equity at an amount you all agree to. The terms of the trust should indicate how someone sells their interest and what happens upon default, etc.
The trust buys the property and owns it. Ownership is managed through the trust.
The hardest part is qualifying for a loan. You’re essentially operating as a business and most home loans are designed for people and couples.
I’m not 100% certain what our attorney did to structure our trust but we were able to do this without the trust having to buy the house itself and still could utilize a CRA loan program loan from a traditional bank and avoid PMI at a lower down payment.
Create a trust instead.
Contact an attorney to draft a trust where you all share equity at an amount you all agree to. The terms of the trust should indicate how someone sells their interest and what happens upon default, etc.
The trust buys the property and owns it. Ownership is managed through the trust.
The hardest part is qualifying for a loan. You’re essentially operating as a business and most home loans are designed for people and couples.
I’m not 100% certain what our attorney did to structure our trust but we were able to do this without the trust having to buy the house itself and still could utilize a CRA loan program loan from a traditional bank and avoid PMI at a lower down payment.