There are two ways you can buy a house in tandem with your parents: you can be tenants-in-common or joint tenants. Tenants-in-common is the more popular arrangement and allows you and your parents to divide ownership of the property in whatever way you like, such as 60/40 or 70/30.

Today many first time buyers are starting off by borrowing jointly with their parents with a view over time to taking the mortgage and the property into their own name. Banks facilitate this by having one name on the deed with the applicant and the parent names being on the mortgage document.

What to do when you buy a house from your parents?

When buying a house from parents, you can work together to time the closing and moving dates. You can buy the home and live there together, buy it and rent it back to your parents until they’re ready to move or work out other arrangements in a way that meets both of your needs.

Are there any benefits to buying your parents home?

There’s another big benefit to buying your parents’ home: Both parties can save a lot of money. Your parents may agree to sell to you at a more reasonable price and waive any contingencies. In addition, both parties can agree not to use a real estate agent, which can save thousands on commission costs.

Can you take out a mortgage on your parent’s house?

If you take out a mortgage to buy the house, it works like any other home purchase. It doesn’t matter that it’s your parent’s house: The bank still expects you to pay for a title search and title insurance. The bank also requires a home appraisal to prove the home is worth the mortgage you take out.

Can a married couple buy a house together?

When you think of more than one name on a mortgage application, you probably assume it’s a married couple. However, there are lots of other people who enter into buying a home together – siblings, parents and their children, extended family, non-married couples, and even friends. This is known in the industry as a joint mortgage.