Want to do a mortgage with 3 people, is there any benefit?

My wife and I are planning on purchasing a house with 1 other family member. Combined we make $185,000 and have $40k down payment, and are seeking a $550,000 house.

Please do not comment on how risky it is etc as I am already well aware of that and we already have plans for all of that in place.

My question is this: Can all 3 of us sign the mortgage, and more importantly SHOULD all three of us sign the mortgage? Is there any advantage? Individualy, my wife and I make 90k and the other family member makes about 95k. Will we get a better rate if we all sign the loan, does our combined income/credit scores go into account, or should my wife and I just sign the mortgage? I am just curious if all three fo us signing would get us a better rate since combined we make more and with 3 people on the mortgage it technically is a safer investment for the bank.

Thank you in advance for helping me out!

3 Answers

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  • Anonymous
    10 years ago

    If you want all three incomes considered by the lender, then all three parties must be "on the loan." And all three credit histories will also be considered. Whether you SHOULD do it only you can decide. You'd better give some though as to how you want to hold title on the house - as joint tenants or as tenants in common.

  • 10 years ago

    All three people's credit and income are considered. Without all 3, you won't qualify based on income.

  • Anonymous
    10 years ago

    You spell out the % of ownership on the title and you each get your own loan.

    My father bought 1/3rd of my sister's house so she could qualify for a mortgage on the remaining 2/3rds. (My dad paid cash though.) She lived in the house and each paid their share of property taxes and insurance. When they sold, dad got 1/3rd of the capital gain.

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