

From experience, basically no banks take collateral on co-owned homes. You probably won’t run into problems like that specifically. You can also easily structure an agreement with a lawyer. In many states you have to have an attorney to buy a home anyway (CT, MA, GA, DE, KY, LA, MD, MI, NH, ND, OK, RI, VT, WV, WO). We used ours to write and tack on the equivalent of an HOA arrangement you’d see in a condominium for our shared rooms.
I do find it amusing we have redditors arguing landlords should be illegal and others arguing co-ownership is a bad idea. Yes, let’s build millions of single room houses for everyone who is single that span the entire continent.
I’m not 100% certain what our attorney did to structure our trust but we were able to do this without the trust having to buy the house itself and still could utilize a CRA loan program loan from a traditional bank and avoid PMI at a lower down payment.