Many consider a joint mortgage to be only available to married couples, but that’s not the case. A joint mortgage can be done by one to four property owners. So, joint mortgages are accessible to anyone–but what other benefits are there? And are there drawbacks? Joint mortgages are complicated, so let’s comb through the kinks together.
There are a lot of benefits to a joint mortgage. For one, obviously, it’ll cost less per owner. Combining resources means if one owner has poor credit, it can be made up by the other owner(s). Also, it can be helpful for those who can’t afford a new home by themselves. Joint mortgages can offer tax benefits. An example is the property transfer tax; with four owners, the transfer tax on a $500,000 home is going to be much less when it isn’t placed wholly on one person. This can save a lot of money and stress.
As with everything, there is always a downside. Joint mortgages are no different. Everyone is responsible when there is a joint mortgage, as opposed to renting, where there may be one primary applicant responsible for payments. So, if one person is late on payments, everyone’s credit is negatively affected. If the owners are not related or married, you may want to consider seeking legal advice before signing into the agreement. Assure yourself that it is in your best interest to participate in a joint mortgage. Also, if one person decides they don’t want to be in the mortgage agreement (due to a lack of funds, a loss of a job, or simple dissatisfaction) it can be incredibly difficult and tedious to get them off the joint mortgage. And, it can often cost a good amount of money to do that.
Are you ready to invest in a home? Thomas Builders has the right home ready for you.
At Thomas Builders, we offer the best homes at the best prices. When you buy with us you can be sure that you’ll receive quality work, and a forever home that suits every single one of your needs. Thomas Builders is your home builder in St. Mary’s and Calvert Counties in Maryland. With 25 years of experience in new home construction in the area, we’re committed to building you a new home that is of the highest quality while maintaining an affordable price. Our service is unique in that we offer 10 models that are already designed and ready to build. All you have to do is find the model that best fits your needs and let us do the rest! From townhouses to one and two-story homes, we have homes of all sizes that will work for you, your family, and any new homeowner.