Friends with Benefits
As homebuying & renting become more expensive - many buyers have turned to buying with friends.
Here are some Important Tips!
Agree on how the property will be owned:
Joint tenancy or tenancy in common
Apply for a mortgage:
While you will be applying for a joint mortgage - each person will fill out their own application. Up to 4 people can be on a conventional loan
Qualify for the loan:
The lender will consider the group's financial details to determine if you qualify.
Put it in writing:
Create a cohabitation agreement that outlines property rights and financial obligations
Tips for Co-Buying
Always talk to a loan officer about the long term risk of being on a loan with others (even partners and family!) - how does this affect your ability to get other loans? What if someone can’t pay their part of the mortgage?
Choose friends wisely - do they share your financial values, work ethic and have a similar vision for the property?
Consider how confident you are in each other's finances.