I purchased a home for my son for $166,000. Both of our names are on the deed. He would like to now mortgage the property to pay me back, but he has no real income to speak of. His home is now worth around $200K and he owes me $156K. Can he use the house for an asset based mortgage?
If you don't need the $156K right away, consider selling your son the house (i.e. getting your name off the title) with a mortgage of $156K (with you as the lender). He makes payments to you instead of a bank, and you might be willing to be a little more forgiving than a bank would be should your son hit a lean period when he cannot sell his work and has trouble making the mortgage payment. You get your $156K back in dibs and drabs rather than in a lump sum, and you have to report the interest component of the payments as income (and charge your son a fair rate of interest, else the difference between the rate you charge and the fair rate becomes a gift to your son) etc.