Source: Bankrate —
For many prospective homebuyers, sole ownership is prohibitively expensive. With inflation and mortgage rates still high, some people may be thinking about less-conventional options for buying a home. While spouses and family members are frequent partners when investing in a house, you may also consider buying a house with a friend. Teaming up to pool your financial resources can increase your buying power and keep homeownership within reach, even if you wouldn’t qualify to buy independently.
Can you buy a house with a friend?
Absolutely — it’s possible to buy a house with a friend, or even with a group of friends. In fact, a 2022 survey by Realtor.com indicated that more than half of Americans would consider buying a primary residence with someone they are not married to, and 31 percent already have. The trend is likely to continue gaining momentum, especially among younger buyers. But before jumping into such a serious commitment, there are several legal and financial implications to think about.
Things to consider
Property type, location and price
Before you begin shopping for a home, make sure you’re in agreement on what type of property you want and which neighborhoods you want to look in. Will the property need multiple primary bedrooms and bathrooms, dedicated parking spaces, pet accommodations? The more you can decide on in advance, the easier your search will be.
You’ll also want to establish a price range that suits your combined budget. Getting preapproved for a mortgage will give you a good idea of how much a lender would be willing to loan you (be sure they understand your co-buying agreement when you apply). Bankrate’s affordability calculator can also help provide a sense of how much house you can afford.
