If you’re in a committed relationship but not ready for marriage, your dream of buying a home can still become a reality. In 2022, 18% of all first-time homebuyers were unmarried couples, according to the National Association of Realtors. While this trend grows, it’s essential to understand the unique considerations and potential risks involved in buying a home as an unmarried couple.
While home buying might feel like a big commitment, it requires some open and honest conversations. Addressing tough questions early on can prevent future conflicts. Discuss how you’ll handle the mortgage if the relationship ends and consider signing a co-ownership contract. This contract outlines who is responsible for different costs, who pays for repairs, and what happens if you both decide to go separate ways.
Get clear on each other’s financial situations, including income, debts, and credit scores, to understand your combined buying power. This step is also critical because lenders treat unmarried couples as individual applicants. If one person has a lower credit score, it could impact the mortgage terms, the loan amount offered, or even the interest rate. Be prepared that if one person stops contributing to the mortgage, the other is legally responsible for the full payment as a co-signer.
Choosing the right title option is crucial for unmarried couples, as it impacts ownership rights and responsibilities. Here are the three main types:
Tenants in Common: Each partner owns a percentage of the home, which may be unequal. This is the most popular option among unmarried couples as it allows each person to will their share to someone else, so ownership doesn’t automatically transfer if one partner passes away.
Sole Ownership: One person holds the title, and only their name is on the deed, making them solely responsible for ownership. This can be a good option if one partner’s credit score might prevent mortgage approval.
Joint Tenancy: Both partners hold equal shares of the home, and neither can sell the property without the other’s consent. This option works well if you want equal control and access rights.
Licensed in AL, AR, CO, DC, FL, GA, IL, IN, KY, MD, NC, OH, OK, PA, SC, TN, TX, VA, WA, WV
308 Market Street SE, Roanoke, VA 24011
© 2025 ALCOVA Mortgage, LLC. All rights reserved.