Mortgage Sharing Lets Prospective Buyers Pool Money To Buy A Home

NEW YORK (CBSNewYork) -- If you don't have enough money to buy a home, would you consider pooling your money with others?

Real estate brokers say mortgage sharing is something new they're seeing.

As CBS2's Emily Smith reported, some realtors said this could be one answer to affordable home ownership --friends or family pooling resources to get a group mortgage and buy a home together.

Kleber Silva said his sisters want a chance to build equity, so they're all going in together to share a mortgage.

The plan is for Silva to pay a higher percentage and own more of the property. Someday, when the house sells, they'll each get a share based on those figures.

"It's definitely a good idea. It's better to put more money in, buy a bigger property, more equity, and try to live together," Silva said.

But is it legal?

"It is, but it's a matter of trust and getting along with your partners," broker Anthony Lolli said.

Rapid Realty owner and broker Anthony Lolli  said it's the only way for many of his clients to become home owners. It's a chance to get into the real estate game despite skyrocketing prices in the area.

The most difficult part of getting a mortgage together with friends or family is that everyone involved has to be honest about their finances.

"There's a disclosure aspect. You may not want you friends or family to know your history, but you have to disclose it. So you want to know about those things in advance," Lolli said, "If they don't pay the mortgage or that person doesn't pay their share, everyone is on the hook."

Knowing the potential pitfalls, the Silva family still felt it made sense to pool their resources to become joint homeowners. They're buying a multi-family home so several of Silva's sister's can live there comfortably.

"They won't split the kitchen, but they will split the house and backyard," he said.

Lolli said it's a legitimate option for the kind of buyer who falls just short of being able to own a home and invest hard earned money. It's also a chance to share groceries and expenses which can all add up. The question is -- can you get along day to day with friends and family without it blowing up?

It is possible to have your name removed from a mortgage, but only if your bank allows it. The remaining parties would then have to qualify to carry the mortgage or a refinancing has to take place.