Co-buying a house with friends: how mortgages and ownership work.
Low inventory and rising prices have pushed homeownership out of reach for many. To make housing more affordable, some people are embracing a nontraditional path to owning a home: co-buying with a friend. Six in 10 renters say they are open to the idea of purchasing a home with a friend, according to a survey of nearly 2,000 renters conducted by Rocket Mortgage. About two-thirds of those who would buy a home with a friend are from the Gen X and Millennial generations, perhaps signaling the middle-aged Americans are tired of waiting for the time when they can afford a house on their own.
Buying a house with a friend might increase your borrowing opportunities, according to Chase Home Lending. With income and assets from two people, borrowers may qualify for a larger mortgage, which expands their housing options. If you want to buy a house with a friend, important things to do are to fully disclose all finances first; rent together before buying together; make a written agreement for shared expenses, taxes and house rules; and have an exit strategy in place before making the purchase.
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Thank you for reading,
Francis
