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Samuel-II, Lawyer
Category: Real Estate Law
Satisfied Customers: 27009
Experience:  real estate law
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I want to help my granddaughter and her husband buy a house.

Customer Question

I want to help my granddaughter and her husband buy a house. Should I be on the mortgage with them or should I just give them money and have them pay me back when able?
Submitted: 3 months ago.
Category: Real Estate Law
Expert:  Samuel-II replied 3 months ago.


This is Samuel. If you are on the mortgage, then you will need to pay the mortgage should they default. I suggest you can consider being placed on the title and once the mortgage is paid then you can quit claim the Deed over to them. But if you are on the mortgage then you are also responsible for it.

I also suggest that you consider having an agreement drafted noting how much you are lending them, that way it cannot be construed as a "gift" and what your terms are for repayment of that loan.

Expert:  Samuel-II replied 3 months ago.

And a local attorney can assist with that and make sure it includes provisions that regardless if they default on the mortgage or not, your loan will be repaid.

Customer: replied 3 months ago.
If I do decide to go on the mortgage with them, how would that affect their homestead exemption?
Expert:  Samuel-II replied 3 months ago.

As long as they are living there as their primary residence, they can still apply for the exemption. You do not need to have it as your primary residence.

Expert:  Samuel-II replied 3 months ago.

Here is a link so you can see what that application looks like and information required.

Expert:  Samuel-II replied 3 months ago.

Please let me know here if you have other questions or need clarification. Otherwise a Positive rating ensures I get credit for my time.

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