The New York Times has a great article about buying a home with friends and you pool your resources to qualify for the mortgage. But there can be challenges:
This type of arrangement can potentially cut buyers’ individual expenses, while providing them with a potential equity gain and a mortgage interest tax deduction. But these ventures can also end badly if buyers assume that friendship alone will see them through any future difficulty.
Before applying for a mortgage, the co-borrowers should fully reveal their income, debt and credit status to each other, said Mike Venable, a senior vice president and head of underwriting for retail bank operations at TD Bank. “It definitely needs to be someone you really trust,” he said.
Read the entire article at: NY Times.