Is it possible to buy half a house?

If two people own a house and one person wants to stay but the other wants out and the person who wants to stay found someone to live with her and share the home can they buy out the other person? Could they take out a mortgage for half the amount of the house in order to buy out the other person? Would the new person be put on the deed with the person staying?

Re: Is it possible to buy half a house?

I would imagine so.

My parents have willed their home to my sister and I and have said that if one of us wants it, the other one would have to buy the other person out.

I could only see it get complicated if the person who wants the house didn't really have the means to do so on their own, KWIM?

I am sure the real estate ladies will have good advice!

P.S. This is just me personally, but if the original owner could get the full mortgage, and maybe rent to this other person instead, I would prefer to go that route vs. dealing with a mortgage with a "friend".

Re: Is it possible to buy half a house?

The information you gave is slightly confusing, but I think this is what you're asking... Yes, you can take out a mortgage for half of the homes value. The other person should NOT be on the mortgage. only your name should be there and the other person is your roommate who is basically giving you rent to cover their living expenses. The house and the mortgage should be your responsibility. Another thing you can possibly do is let the person you are buying out hold the mortgage. You would still have a lawyer draw up the contract, but rather then pay the bank, you would pay the other owner directly. You may able to get a lower rate, if your family is not needing the money upfront and would be happy with additional monthly income.

Re: Is it possible to buy half a house?

Ok I'll clear it up a bit. Say my mom and dad bought a house together and years later, they divorced. They didn't sell the house and one didn't give it to the other, they both kept it but the dad moved out and the mom lived there with the kids until they moved out and would sell then. So both kids live out and the house needs to sell but the mom doesn't want to move out. Also, the son now has a family and needs a home. Can the son buy out the dad and the the mom and the son would both own the home? Also, what if the doesn't have the cash to buy out the dad, can he take out mortgage on just half of the house to buy it from the dad?

Re: Is it possible to buy half a house?

Yes, it's possible. Yes, the new "buyer" gets deeded on to the property. The "seller" would deed his/her portion to the new "buyer" or the "seller" and remaining owner would deed over to the new "buyer" and remaining owner. Percentages can be adjusted that way.

If the "buyer" needed to obtain a loan to buy out the "seller's" half and went to a bank who required a mortgage be filed, then the "buyer" and remaining owner would have to sign the mortgage. The "buyer" could and here should be the only borrower and the only one signing the note and loan documents. A mortgage is actually a consensual lien that owners give to lenders. All deeded owners have to join in signing the mortgage, but all do not have to be borrowers or obligated to repay the related loan. "Getting a mortgage" is really a misnomer. When buying, buyer's get a mortgage loan and actually give a mortgage.