Is 2 people are buying a home but only one will be on the mortgage, is there an affidavit of financial responsibility so the other buyer is beholden to contributing towards the mortgage payments?

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Is 2 people are buying a home but only one will be on the mortgage, is there an affidavit of financial responsibility so the other buyer is beholden to contributing towards the mortgage payments?

My clients are buying a home together and they are engaged to be married. Due to credit issues only one is financing the mortgage loan. They will be listed on the title and deed for the home but not the mortgage promissory note? How can the buyer obtaining the mortgage loan protect himself?

Asked on November 29, 2016 under Real Estate Law, Pennsylvania

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The buyer can have a pre-nuptial agreement drawn up that in the event of divorce, the house is solely his or hers because he/she obtained the mortgage--if that's what they want; they could also any other terms the two of them are comfortable with, such as the one on the mortgage gets a larger share of the equity in a divorce, or the other one has to pay his or her share of the mortgage or give up any claims to the home, etc. In addition to a pre-nup (which only comes into effect if they do in fact get married), they should have a separate agreement in which the non-mortgagor agrees to pay his or share (50-50, presumably) of the mortgage to the mortgagor or else becomes liable for half the remaining principal balance; this makes sure that he or she will pay if the wedding doesn't happen. It would be a good idea to let an attorney draw these agreements up.


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