Sometimes there are situations where you have wondered if it is possible to buy a property with the help of other people, but you don’t know if it is possible. For example, you are interested in buying a property, but you don’t know if you qualify and you think that with a co-signer you could qualify. Or maybe you want to buy a beach house with some friends, but you don’t know if you can buy a property with a group. Here we explain the options that exist that allow you to buy a residence with multiple buyers.
An alternative, especially for young couples without mortgage credit experience and/or lack of sufficient or stable income, is the purchase with the participation of co-signers, for example, with the help of parents, who provide them with the ability to be approved. .
There are also situations where you want to share a property. For example, a second home or vacation home, which you want to buy with other people or couples, and in that case they are also considered co-debtors of the transaction.
Another possibility is when the buyer of the residence is a corporation or a special company, but natural persons will appear as natural representatives or guarantors.
There is also the possibility that an unmarried couple may be interested in purchasing a property together, in which case both would be owners and co-debtors in the percentage agreed upon between them. There is also the possibility that a married couple has premarital agreements where each one can then acquire and mortgage without the need of the other party.
The quality of the appearance depends on all the members qualified for the transaction. This means that, if you are the co-signer, you have to formalize the mortgage loan application. Your income and expenses now enter the final calculation of loan qualification and approval. If you serve as a guarantor, you will appear on the mortgage deed, but you do not own the property. If you appear on behalf of or as a personal guarantee for a company or corporation, you are responsible for the debt, but not the owner of the property.
If you are a co-signer, you are as responsible for paying the mortgage as the main debtor is, therefore, you will be notified of the arrears and it will be reported to your credit according to how the debt is repaid. If you are a guarantor, you will be responsible for repaying the debt, and you could also be in charge of recovering the collateral, its execution and sale.
Neither the co-debtors nor the guarantors have to live in the mortgaged property, unless expressly declared so.
An example may be a property that is two units and each co-signer occupies one of them, and both units are under the same mortgage. Another option is a second property where all the debtors occupy the property, but alternately (one week, one week the other).
The important thing is that all those appearing must assume some obligation for the debt and the good use of the property. The release of these obligations will require qualification procedures, transfers, changes of debtors, among others.
At Oriental, we are more than ready to help you. For more information and to start your mortgage process, click here.
