Yes, you can buy a home with an unrelated adult partner. Both purchasers will have to qualify for the mortgage unless it is your intent to buy the home on your own, and rent out a portion to a roommate. If you are going to be a landlord rather than a co-purchaser, you probably will not be able to use the rent you would collect to qualify for the mortgage.
If you are buying the home with someone else, you will want to discuss the following issues with your home ownership partner:
How much is each purchaser contributing to the down payment and closing costs?
How much will each purchaser contribute to monthly house payments and other house related bills such as gas, electricity, water and sewer and so on?
What happens if one of the purchasers doesn’t live up to their bargain?
If one purchaser wants to move and sell, what will be the rules for escaping the mortgage obligation?
When the home is sold, if there is profit on the sale, how will it be split?
It is always a good idea to consult with a real estate attorney when buying a home with an unrelated adult partner. The attorney can help the two of you put together a legal agreement to cover these and other issues which could come up. If you plan in advance to cover all options, you both will be protected if your relationship changes in the future.
For more detailed information, come to our FREE NO OBLIGATION FIRST TIME HOMEBUYER class or wait for future blogs. “Simple answers to home ownership questions”.