I "own" two unencumbered houses together worth around $450K. They are currently titled to a family member and I am not credit-worthy. An friend of my has excellent credit and may be willing to let me borrow her credit to obtain mortgage funds of around $100K using one of the houses as collateral. The funds will be used to improve the properties.

Although this is not my primary question, a mortgage broker suggested that friend w/credit might be added to the title of the collateral house as a joint investor, in order to obtain a "joint investor, buy-out refi" and the current title holder would subsequently be removed after funding. Does this sound correct?

More important to my question, however, friend w/credit is concerned that her future ability to obtain need-based scholarship funds for her daughter's education might be jeopardized once the house(s) and/or mortgage funds are in her name.

My question is: can we create a business entity or otherwise structure the transaction such that friend w/credit can legally avoid claiming the equity in the house(s) as an asset, and mortgage funds as cash on hand? As compensation for her part, friend w/credit would probably receive a monthly salary for managing the accounts. I do not envision any other responsible parties/shareholders being named as part of a business entity, although this may be an option if absolutely required.

Any advice much appreciated!