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How to go about buying a house with a family member

I’m in my 30s grew up in SoCal. As we all know housing prices here are crazy now. Even with my 150k salary a year, it has not been enough for me to qualify for anything in OC/LA, and my credit score is barely 700. I’ve been paying off medical, student loans, and CX debt these past years and could not jump on buying a house during Covid.

My Moms brother has a stable blue collar job, and is very good with his money. he and his wife have well over 100k+ saved up, 800+ credit score, and vehicles paid off cash, the only problem is that they are undocumented. I don’t think he will be able to become a citizen until his oldest child is 18, but his wife will be receiving her green card soon.

I say this because, they would like to purchase a home/duplex with me, so that we stop throwing our money away in rent, and build equity.

  1. I don’t have enough money saved up for a down payment on my own,
  2. he hasn’t purchased a home because of his legal status.
  3. I believe it would hurt my young cousins chances of receiving financial aid for university. I think for financial aid they look at if your parents have equity and what not.

So how should I go about this? I see this as 1. An investment opportunity since they would be fronting the down payment and I’d have time to pay back my portion, and would be saving money at the same time, since my portion of the mortgage would be less than what I’m currently paying for rent (close to 4k) 2. I’d be helping out a person who is a father figure to me ( mine passed away when I was a child, and he and his wife have always been there for me, and when I went through university ) 3. This could help me save up money and be able to purchase another home in the next few years, we can decide to either buy each other out, or sell the home for a profit.

Is this even a possible thing to do? I would want to get everything documented on paper, notorized of course since I would be the one taking out the home loan nd would be a first time buyer. How would I go about putting him on the title?

What would be other risks I’d be exposing myself to?

Would I even be able to purchase a home that I potentially wouldn’t qualify for, “loan wise” ( let’s say I qualify for 500k but we find something that is say, 900k )

Excuse my ignorance and thanks for any suggestions!

submitted by /u/Important_King2392
[link] [comments]

source https://www.reddit.com/r/RealEstate/comments/1bbycyt/how_to_go_about_buying_a_house_with_a_family/
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