Single Couple Purchasing Real Estate
Would Tennants in Common be the best way for a single couple to purchase Real Estate? He can get a VA Loan and I have funds from my parents estate. I have children from a previous marriage and wish to protect my interest for them. I read on your forum that to protect my downpayment it needs to be specified in the deed. Have you ever heard of a lending Institute applying a VA loan (for his portion) for a tennants in common deed?
I see a couple of issues here that should be addressed:
First, if you do decide to partner on this property, have a lawyer do a partnership agreement (or LLC) for you, so your rights are fully protected...so if/when you break up and want to go your own separate ways, you'll have an agreement in place as to exactly what's going to be done with the property, by whom.
It should spell out exactly what the rights and obligations of each of you are to be at that point.
Second, the loan issue: No lender is going to give either of you a loan on a half interest...oh, maybe your Mom or Dad, but no rational commercial lender.
Likely the lender is going to insist that your partnership or LLC be formed first, then it borrows the money, guaranteed by both of you, separately and personally....that way, in case of foreclosure, it will end up with the property, or it could sue either or both of you for the debt.