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Mortgage obligation/rights to deed with boyfriend/girlfriend on VA loan?
Hi, My boyfriend and I have decided to purchase a home together. We are both residents of the state of Wyoming. There was a program put out a few weeks ago that had a 2.5% interest rate, but the income cap was 63K/year, and with both of our incomes, that put us over the limit. Also, we wanted to use his VA eligibility, but the VA would not let me on the mortgage because I am not his spouse and do not have VA rights of my own. We made the decision to get the Spirit of Wyoming! loan program and use the VA loan to save the extra interest and not have a down-payment required. Now, we're in a bit of a dilemma ~ My stance: I am 100% okay with being financially obligated to the house. Originally, we had planned to mortgage the house together, and the only reason we did not was because we saved thousands using the special Wyoming program (About 15K the first five years alone!)and the VA loan. I have said, however, that since I am paying equally into the mortgage, I want to make sure that I have rights to the property, rights to the equity if/when we re-sell the house. We're talking about a lot of money, here, and I don't want to have some unforeseen falling out (I don't anticipate it, but you never know), and then have to walk away with nothing, and have invested years into this property and have no return. If I wanted to just throw my money away and invest for someone else's benefit, I'd rent. His stance: He is hesitant to put me on the deed after closing because he does not want me to be able to have 50% claim to the house if it is sold but no real legal financial obligation to the property since I am not on the mortgage. I have offered to sign a lease, but a lease is not the same as the 30-year obligation he is tied to with the mortgage. Again, he doesn't see us breaking up, but with this kind of money on the line, I think we would both sleep easier knowing there were safeguards in place. So ~ Does anyone have a solution to how I can have rights to the property, and he can have the assurance that I am going to be held accountable for paying my share of things? I know it's no big deal to put me on the title, but we have no idea how or what kind of papers to get drawn up to say that I will be financially liable. The only option I would see would be to re-finance, but I'm NOT loosing this amazing mortgage rate. There were only a limited # of mortgages available through this program, and we were very lucky to get one of them (there were roughly 100 mortgages available at this rate and they were practically gone by the end of week 2 of the program being started). The big problem is that it's a VA loan, and I know they get weird about renting or having an agreement that entitles me to equity since that would be like 'selling' the VA loan to a non-veteran. Help!!! ~ Per the VA website, you can add a name to the deed. ~ Per the VA website, you can rent out a VA mortgaged property.
Public Comments
- You can not legally have what you want. Even if you could, there is all that loan fraud and defrauding the state government to contend with. He can not give you a lease because of the VA, and it would not entitle you to squat anyway. The only way to entitle you to 50% is to put you on the deed. But, the VA will hear about that and call the loan due. I do not know if your state has any kind of lien because of that deal (they do if he has a time limit to sell), but if they do they will be informed as well that there are now 2 owners, not just one. There is no way to make you financially responsible for the property unless you are on the mortgage itself.
